Perpetual inventory method related problem


Harder Corporation uses the perpetual inventory method. On March 1, it purchased $30,000 of inventory, terms 2/10, n/30. On March 3, Harder returned goods that cost $3,000. On March 9, Harder paid the supplier. On March 9, Harder should credit

a. purchase discounts for $600.

b. inventory for $600.

c. purchase discounts for $540.

d. inventory for $540.

Kiner Co. has the following data related to an item of inventory:
Inventory, March 1 100 units @ $4.20
Purchase, March 7 350 units @ $4.40
Purchase, March 16 70 units @ $4.50
Inventory, March 31 130 units

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Accounting Basics: Perpetual inventory method related problem
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