Acompany purchased inventory for $4,000 from a vendor on account, fob shipping point, with terms of 2/15, n/30. the company paid $200 cash for freight in. the entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include

cost of inventory comes out to be $ 4,120.

Step-by-step explanation:

purchased inventory = $4,000

the invoice is paid in 15 days therefore discount available is 2% would be

hence,

cost of inventory =Purchase Value+Freight charges –Discount on net  purchase

= $ 4,000 + $ 200 – ($4,000 x 2%)

= $ 4,000 + $ 200  – $ 80

= $ 4,120

hence the cost of inventory comes out to be $ 4,120.

c-4 is the final answer! : )