Winston started business on Jan. 1. During ghe year, the company purchased merchandise with an invoice of 5,000,000. Winston paid 200,000 freight on the merchandise. During the year, Winston returned 800,000 of the merchandise to the supplier. All ourchases were paid for in a timely manner and a 100,000 cash discount was taken. 4,180,000 of the merchandise was sold for 6,270,000. What was the Dec. 31 balance in the inventory account?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 5P: A chain of appliance stores, APP Corporation, purchases inventory with a net price of 500,000 each...
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Winston started business on Jan. 1. During ghe year, the company purchased merchandise with an invoice of 5,000,000. Winston paid 200,000 freight on the merchandise. During the year, Winston returned 800,000 of the merchandise to the supplier. All ourchases were paid for in a timely manner and a 100,000 cash discount was taken. 4,180,000 of the merchandise was sold for 6,270,000. What was the Dec. 31 balance in the inventory account? 

 

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