(Answered) Question - abc co purchased 5000 of inventory on account

Accounting

Question - ABC Co. purchased $5,000 of inventory on account with payment terms of 2/10, n/30. The goods were delivered FOB shipping point. ABC paid freight costs of $200 in cash. ABC paid for the goods within the discount period. Assuming a beginning inventory balance of zero, what would be the balance in the inventory account after the purchase and payment for inventory were recorded? ABC Co. keeps perpetual inventory records and uses the net method of accounting for inventory purchases.

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