E53 Suppose The Bay uses the perpetual inventory system and purchases $300,000 of sporting goods on account from Nike on April 10, 2020. Credit terms are 1/10, net 30. The Bay pays electronically on April 20, 2002, and Nike receives the money the same day.

Journalize The Bays (a) purchase and (b) cash payment transactions. What was The Bays net cost of this inventory?

Recording purchase transactions under the perpetual inventory system

Net inventory cost, $297,000