E6-8 (Static) Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual
Inventory System [LO 6-3]
ces
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events
was as follows:
June 3 Purchased goods for $4,100 from Diamond Incorporated with terms 2/10, n/30.
June 5 Returned goods costing $1,100 to Diamond Incorporated for credit on account.
June 6 Purchased goods from Club Corporation for $1,000 with terms 2/10, n/30.
June 11 Paid the balance owed to Diamond Incorporated.
June 22 Paid Club Corporation in full.
Required:
Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the
beginning of the month. Calculate the cost of inventory as of June 30.
Cost of Inventory
