Redd Hat Shop received a shipment of hats for which it paid the wholesaler $2,940. The price of the hats was $3,000, but Redd was given a $60 cash discount and required to pay freight charges of $75. In addition, Redd paid $100 to cover the travel expenses of an employee who negotiated the purchase of the hats. What amount should Redd include in inventory? Why?
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