Answer:
Option C,$209,000 is the correct answer.
Explanation:
The total value of inventory purchased comprises of invoice price plus shipping cost,less allowance for flawed pieces as well as the cash discount received as shown computed below:
Invoice price $220,000
shipping cost $20,000
purchase allowance for flawed pieces ($20,000)
Cash discount 5%*(220,000+20000-20,000) ($11,000)
Total value of inventory purchased $209,000
The cash discount was taken because payment was made within the discount period
