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Question: You are given the following data for a business with a year-end 31/08/2020:Total sales revenue: £18,000
• Inventory as at 01/09/2019: £8,250
• Cost of sales: £22,200
• Inventory purchases in cash: £11,000
Upon completing the inventory valuation as at 31/08/2020, the business discovered that £250 worth of inventory had been stolen and would need to be written off. In addition, some inventory with a cost of £350 has a net realisable value of £300. The total closing inventory value before any of the aforementioned adjustments amounted to £6,000.
What is the value of the inventory bought on credit during the year ending 31/08/2020?
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