Norfolk sporting goods purchases merchandise with a catalog list price of $30,000. the retailer receives a 30% trade discount and credit terms of 2/10, n/30. what amount should norfolk debit to the inventory account? $30,000 $29,400 $20,580

Respuesta :

The answer is $20,580.

$30,000 x 0.30=$9,000

$30,000-$9,000=$21,000

$21,000 x 0.02=$420

$21,000-$420=$20580

A merchandise purchase is termed as the financial plan that is expected to be purchased in the accounting period. This is the financial budget that the managers plan to purchase for the upcoming period of the year.

The answer is $20,580.

For the calculation of the amount debit to the inventory account, $30000 will be multiplied with the trade discount that would give the amount $9000. This amount would be subtracted by the list price that is $30000. Then the amount of $21000 will be multiplied by the credit account and the final amount will be $420. This would be subtracted with $21000 and the debit amount of the inventory account is $20580.

The remaining options are not correct as per the data given in the question to calculate the debit of the inventory account.

To know more about the calculation of the debit account, refer to the link below:

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