On October 1, XYZ Co purchased $79,800 of inventory from its supplier on standard credit terms of 1/10, net 30, FOB destination. The cost of freight was $1,680. XYZ settled the invoice for the purchase on October 7. XYZ Co uses the perpetual inventory system and the net method of accounting for purchase discounts. 

What amount would the company have recorded as the liability resulting from the purchase?

Answer rating: 100% (QA)

To determine the liability resulting from the purchase we need to consider the cos... View the full answer