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.