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Khalid purchased goods with an invoice value of RM150,000 for resale purposes.
The company incurs RM10,00 to transport these goods to the warehouse. The company
was entitled to a 10% discount because they purchased in bulk.
Besides that, as Khalid pays to his suppliers early they were further entitled to 5% discount for early payment.
During year end, the management noticed that the inventory were slow moving
and they were unable to sell it, thus the management decided to make a little modification to the inventory so as
improve the attractiveness of the inventory.
A further RM12,000 will be spent on the inventory after which they will be able
to sell the inventory for an estimated value of RM153,000.
Required:
Determine the value the inventory is to be carried.
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