Question

Consider the following facts:

– Company A purchased goods for $20,000.

– Its credit terms were 2/10, n/30.

– Company A returned $400 of the goods to the seller andreceived credit on its account.

– Company A paid the freight on the shipment of the goodsoriginally. The freight cost was $100.

– Company A made final payment for the goods within the discountperiod.

Based on this scenario, Company A's inventory:

a. increased by $19,308.

b. increased by $19,208.

c. increased by $19,700.

d. increased by $19,306.

e. None of these answers are correct.