On september 1, horton purchased $13,300 of inventory items on credit with the terms 1/15, net 30, fob destination. freight charges were $280. payment for the purchase was made on september 18. assuming horton uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase? a. $13,580b. $13,300c. $13,167d. $13,447

C) $13,167

Explanation:

Since the sales was made FOB destination, the freight charges were included in the invoice, so the total purchase was $13,300.

Horton uses the net method of accounting for purchase discounts, so it will always record the inventory purchases with the applicable discount whether they received them or not.

$13,300 x 99% = $13,167

Since Horton was unable to pay in time, the $133 discount is recorded as a discount lost (expense account).

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