Party Supply Inc. a calender year corporation, took a physical inventory count on November 30, Year 1 and properly valued its inventory at $4,250,000. Because the company will not perform another physical inventory count on December 31, Year 1, you have been asked to calculate how each of the following transactions would affect the inventory balance reported on the December 31, Year 1 balance sheet. Enter the amount in the associated cells.

1. The company purchased inventory costing $1,500,000 during the month of December. The inventory was entirely paid for in December so that the company could take advantage of a 2% discount on the purchase. Freight-in on the inventory was $100,000 for the month.