Jake’s market recorded the following events involving a recent purchase of merchandise: received goods for $60,000, terms 2/10, n/30. returned $1,200 of the shipment for credit. paid $300 freight on the shipment. paid the invoice within the discount period. as a result of these events, the company’s inventory increased by
a. $57,624.
b. $57,918.
c. $57,924.
d. $59,100.

C. $57,924.

Explanation:

Inventory do not only include the purchase price but also includes the cost to bring the inventory at its place.

Therefore, the freight paid for bringing the inventory is included in its cost.

Further the terms of purchase provide, total 30 days credit period and 2% discount if the payment is made within 10 days.

In the given instance there is an outward return of goods worth $1,200

Thus, total goods received = $60,000 - $1,200 = $58,800

Since payment made in 10 days, discount = $58,800 2% = $1,176

Thus, cost of goods excluding freight = $58,800 - $1,176 = $57,624

Total carrying cost of goods = $57,624 + $300 freight in

= $57,924.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.