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Question - Precision Musical Instruments, merchandisers of musical instruments, has provided the following details:
Mar. 5 Inventory purchased on account $700,000
Mar. 8 Freight in 35,000
Mar. 13 Purchase returns 65,000
Mar. 14 Allowances by vendor 12,000
Mar. 20 Payment made to vendor for purchases on March 5 ?
Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used.
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