E$6-7($Algo$)$ Reporting Purchases and Purchase Discounts Using a Perpetual Inventory System $[$LO $6-3]$

During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as

follows:

January $6$ Purchased goods for $$1,900$ from Green with terms $\frac{3}{12},\frac{n}{45}.$

January $6$ Purchased goods from Munoz for $$1,250$ with terms $\frac{3}{12},\frac{n}{45}.$

January $14$ Paid Green in full.

February $2$ Paid Munoz in full.

February $28$ Purchased goods for $$700$ from Reynolds with terms $\frac{n}{45}.$

Required:

Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales

were made during January and February. Calculate the cost of inventory as of February $28.$