Purchases of merchandise on account were $300,000. b. The cost of freight to receive the inventory was $10,000. This was paid in cash. c. Debra returned $5,000 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.

$305,000

Explanation:

Calculation for the dollar amount that Debra will have in inventory at the end of the month

Purchases of merchandise on account were $300,000

Add Cost of freight to receive the inventory was $10,000

Less merchandise returned $5,000

Inventory ending Dollar amount $305,000

($300,000+$10,000-$5,000)

Therefore the dollar amount that Debra will have in inventory at the end of the month is $305,000

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