1.
1.
On June 15, Oakley Inc. sells merchandise on account to Sunglass Hut (SH) for $8,500, terms
1/10, n/30. On June 20, SH returns to Oakley merchandise that SH had purchased for $1,800. On
June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the
amount of cash paid by SH to Oakley?
2.
The Tuck Shop began the current month with inventory costing $25,565, then purchased
inventory at a cost of $63,890. The perpetual inventory system indicates that inventory costing
$70,500 was sold during the month for $73,850. If an inventory count shows that inventory
costing $18,630 is actually on hand at month-end, what amount of shrinkage occurred during the
month?
On June 15, Oakley Inc. sells merchandise on account to Sunglass Hut (SH) for $8,500, terms
1/10, n/30. On June 20, SH returns to Oakley merchandise that SH had purchased for $1,800. On
June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the
amount of cash paid by SH to Oakley?
Solution
Answers:
1. Amount Paid = (8500 -1800) * 99/100 = $6633 (B)
2. Shrinkage = $ 25565 +63890 -70500 -18630 = $ 325 (B)
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