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Angle Company started business on January 1. During the year, the company purchased merchandise with an invoice price of $500,000. Angle also paid $20,000 freight on the merchandise. During the year, Angle also returned $80,000 of the merchandise to its suppliers. All purchases were paid for in a timely manner, and a $10,000 cash discount was taken. $418,000 of the merchandise was sold for $627,000. What is the December 31 balance in the Inventory account

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ayokenny2001

Answer:

$12,000

Explanation:

Given the above information, the ending balance in inventory account is computed as seen below

= Merchandise purchased - merchandise withdrawn - Merchandise returned to suppliers + Cash discount taken

= $500,000 - $418,000 - $80,000 + $10,000

= $12,000

Therefore, the balance on the inventory account as at December 31 is $12,000

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