Elite Apparel purchased 80 new shirts and recorded a total cost of $3,140 determined as follows:

Required:
Make the needed corrections in this calculation. Give the journal entry(ies) to record this purchase in the correct amount, assuming a perpetual inventory system. Show computations.

Transcribed Image Text:

Invoice cost Shipping charges Import taxes and duties Interest paid in advance (10%) on $2,600 borrowed to finance the purchase $2,600 165 115 260 $3,140