Reference no: EM13998223
Exercise 1. Information related to Sportsland Inc. is presented below.
On Jan. 5, Sportsland Inc. purchased $21,000 of sportswear from the Krausman Company, with terms of 5/10, n/30.
On Jan. 8, Sportsland paid $800 cash to Ace Trucking Company for freight on the shipment.
On Jan. 11, Sportsland returned $1,700 of sportswear for credit.
On Jan. 12, Sportsland paid the amount due to Krausman Company in full.
Required, (show computation)
Compute Inventory value.
Compute cash payment amount to Krausman Company.
Assume that Sportsland Inc. paid the balance due to Krausman Company on Jan. 20 instead of Jan. 12. Recalculate cash payment amount.
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