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On September 1, Howe Office Supply had an inventory of 30 pocket calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased 80 calculators at $20 each from De Vito Co. for cash.9 Paid freight of $80 on calculators purchased from De Vito Co.10 Returned 2 calculators to De Vito Co. for a $42 credit (including freight) because they did not meet specifications.12 Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30.14 Granted credit of $31 Mega Book Store for the return of one calculator that was not ordered.20 Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30.
In addition, Sterling discovered that it had erroneously recorded a check for $46 that should have been recorded for $64. What is Sterling's correct Cash balance at March 31?
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Background: As one of the world's largest retail giants, Wal-Mart provides a perfect illustration of inventory disclosure. What is Walmart's ending inventory as of January 31, 2013? What percentage of Walmart's total assets is the Inventories asset?
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