Elite Apparel purchased 90 new shirts and recorded a total 1 answer below »

Elite Apparel purchased 90 new shirts and recorded a total cost of $2,620 determined as follows:
Invoice cost ………………………………………………………….$2,180
Shipping charges ……………………………………………………. 175
Import taxes and duties ……………………………………………… 145
Interest (5.5%) on $2,180 borrowed to finance the purchase ……….. 120
$2,620
Required:
Make the needed corrections in this calculation. Give the journal entry(ies) to record this purchase in the correct amount, assuming a perpetual inventory system. Show computations.

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