The company had purchased $58,000 of inventory from Zahn
The company had purchased $58,000 of inventory from Zahn (a vendor) approximately 3yrs ago. As of today the balance of the remaining inventory was $18,674. This inventory is most likely obsolete and will not be used in the future.
Zahn has offered to take back the inventory for future credit. Zahn is willing to offer a buy one get one free deal based on the weight of the product returned.
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Below are the relevant details. What is the value of the inventory purchased under the buy one get one free deal? What are the entries to record the obsolete & new inventory? For any data missing, make relevant assumptions.
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Inventory on hand, including obsolete inventory                                          -$76,852.00
Weight of inventory returned for buy one get one free deal                                     -280g
Weight of inventory purchased under buy one get one free deal                             -500g (250g are free; 250g purchased)
Amount Paid for inventory purchased on buy one get one free deal                       -$19,681.00
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Answers
Status NEW
Posted 20 Apr 2017 09:04 AM
My Price 10.00
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Attachments
file 1492679507-f1_f1_f1_the_company_had_purchased_58000_of_inventory_0.doc preview (291 words )
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