Hi guys, Please help me solve this question. Thank you. My cost of inventory was

Question

Hi guys, Please help me solve this question.

Thank you.

My cost of inventory was 3075 but it was wrong.

Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 7-5] During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,200 from Diamond Inc. with terms 3.0/12, n/45. Returned goods costing $1,150 to Diamond Inc. for full credit. Purchased goods from Club Corp. for $1,050 with terms 3.0/12, n/45. Paid the balance owed to Diamond Inc. Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

Explanation / Answer

4008.5

diamond inc:

initial purchase = 4200

- stock returned= - 1150

- cash discount =   -91.5 (4200-1150)*.03

club corp:

purchase=             1050

no discount as payment made after 12 days

total = 4008.5

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