Why is the payment of inventory equal to 75000 instead of 30000 if the cost price is 750 and Jody purchased 24 books

E9-1 Jody Jools opened an on-line business, Rare Editions, buying and selling rare Africana books on 1 April 207. One of Jody's close friends helped her to design and set-up a webpage for Rare Books. As interest in and demand for rare Africana books had recently increased, Jody's business did well from its first week of operation, with sales surpassing her expectations. At 30 April 207, she had only 5 books on hand, each of which had cost her C750 when purchased from a deceased estate. On 1 May 207, Jody purchased a further parcel of 40 books for C750 each from the deceased estate. Jody applied a mark-up of 100% on cost and advertised the books for sale at C1500 each. Between 1 May 207 and 31 May 207, she sold 24 books. May 1, 20X7: Inventory (40 books x C750) 30,000 Cash 30,000 (To record the purchase of books) May 1, 20X7: Inventory 75,000 Accounts Payable 75,000 (To record the payment for the purchase of books) May 1, 20X7: Inventory 37,500 Cash 37,500 (To record the cost of 5 books on hand) May 31, 20x7: Accounts Receivable 36,000 Sales Revenue 36,000 (To record the sale of 24 books at C1,500 each) May 31, 20X7: Cost of Goods Sold 45,000 Inventory 45,000 (To record the cost of goods sold for the 24 books sold) This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts