Precision Musical Instruments, merchandisers of musical inst…
Precision Musical Instruments, merchandisers of musical instruments, has provided the following details:Mar. 5Inventory purchased on account$800,000Mar. 8Freight in40,000Mar. 13Purchase returns60,000Mar. 14Allowances by vendor10,000Mar. 20Payment made to vendor for purchases on 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.