Berro Musical Instruments, merchandisers of musical instrume…
Berro Musical Instruments, merchandisers of musical instruments, has provided the following details: Mar. 5 Inventory purchased on account $800,000Mar. 8 Freight in 30,000Mar. 13 Purchase returns 60,000Mar. 14 Allowances by vendor 10,000Mar. 20 Payment made to vendor for the purchases of March 5 ? Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used. (Hint: no discount can be taken on the freight, returns or the allowance)A) $790,000B) $729,600C) $730,000D) $730,800