Problem
Select Apparel purchased 90 new shirts and recorded a total cost of $2,741 determined as follows:
Invoice cost $ 2,250
Shipping charges 190
Import taxes and duties 166
Interest (6.0%) on $2,250 borrowed to finance the purchase 135
$ 2,741
Prepare the journal entry to record this purchase in the correct amount, assuming a perpetual inventory system.
Record the correct total cost of the purchase, assuming a perpetual inventory system.