Exercise 5-2 Inventoriable Costs LO During the first month of operations, ABC Company incurred the following costs in ordering and receiving merchandise for resale. No inventory was sold. Purchasing department salary, $1,000 Supplies used to label goods at retail price, List price, $100, 200 units purchased Volume discount, 10% off list price Paid freight costs, $56 Insurance cost while goods were in transit, $32 Long-distance phone charge to place orders $9.75 Interest paid to supplier, $46 $4.35 Required What amount do you recommend the company record as merchandise inventory on its balance sheet? Explain your answer. For any items not to be included in inventory, indicate their appro- priate treatment in the financial statements