Question
Regency Store Inc. made the following purchases during October, 2020. October 25: Purchased dresses, $50,000, terms 1/10, n/30, FOB destination. October 30: Purchased pants, $100,000,
Regency Store Inc. made the following purchases during October, 2020.
October 25: Purchased dresses, $50,000, terms 1/10, n/30, FOB destination.
October 30: Purchased pants, $100,000, terms 2/15, n/60, FOB shipping point.
Required:
- For each purchase indicate what is the amount of the cash discount.
- Assume freight charges are $500 per shipment. For which purchase(s) is Regency Store Inc. responsible for the freight charges?
- What is the total amount of inventory costs, assuming that all discounts are taken?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
