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Evaluating Inventory Cost Components [LO 6-3]
Assume Anderson’s General Store bought, on credit, a truckload of merchandise from American Wholesaling costing $23,600. If the company was charged $710 in transportation cost by National Trucking, immediately returned goods to American Wholesaling costing $1,200, and then took advantage of American Wholesaling’s 2/10, n/30 purchase discount.
How much did this inventory cost Anderson’s?
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