Question: Determining Inventory Cost in a Perpetual System Using the information in problem below, how much should Anderson's report as the cost of inventory?
Problem: Preparing Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual System Assume Anderson's General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $23,000. The company was charged $650 in transportation cost by National Trucking, immediately returned goods to American Wholesaling costing $1,200, and then took advantage of a 2/10, n/30 purchase discount. Prepare journal entries to record the inventory transactions, assuming Anderson's uses a perpetual inventory system.