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Accounting for Purchase Transactions
Debra Company began operations on June 1. The following transactions took place in June:
a. Purchases of merchandise on account were $600,000.
b. The cost of freight to receive the inventory was $20,000. This was paid in cash.
c. Debra returned $10,000 of the merchandise due to an ordering error. Debra received a full credit for the return.
d. Debra paid the remaining balance for the merchandise.
Calculate the dollar amount that Debra will have in inventory at the end of the month. Assume Debra uses the perpetual inventory system and there were no sales.
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