05:07 614 く POAI Assignment-3_Questions_ispa ... 1 ACCT2043 Assignment 3 Question 1 (Total 20 marks) Part A (16 marks) Semester one, 2024-25 Fantastic Company is a distributor of consumer products and perpetual system is used for inventory. The following are the transactions completed in September. Date Transactions 1 Purchased merchandise for $25,000 from Best Company. on account, terms 1/10, n/45, FOB shipping point. 3 6 Paid cash $150 freight charge for the goods purchased on September 1. Sold merchandise to A&B company on account for $15,000, terms 2/15, n/30, FOB shipping destination. The merchandise cost was $8,000. 9 A&B returned merchandise of $3,000 that sold on 6 September with cost of $1,600. 13 Purchased merchandise from Medium Company on account for $18,000, terms 1/10, n/30, FOB destination. 19 21 23 After negotiation, Fantastic received a price reduction of $500 from Medium Company for the defective goods purchased on September 13. Received payment from A&B for the outstanding balance. Paid Medium the outstanding balance. Required: Prepare journal entries to record the above transactions. (Explanation is not required) Part B (4 marks) (16 marks) (i) DeYi Supermarket Zhuhai ordered $100,000 merchandise from Huayun Guangzhou with freight term FOB shipping point. The merchandise was delivered from Huayun to DeYi by SF courier. On the way from Guangzhou to Zhuhai, the merchandise was destroyed totally in traffic accident at G105 highway. Does DeYi require to pay $100,000 for the merchandise? Briefly explain. (2 marks) (ii) If a company uses perpetual inventory system, is it necessary to report an inventory count at the end of the period? Why or why not? (2 marks) ACCT2043 Assignment 3 Question 2 (Total 20 marks) Part A (16 marks) Semester one, 2024-25 Cayman Company entered into the following purchases and sales transactions in June: Units Acquired at Cost Units Unit Cost 160 @ $10.00 230 @ $12.00 90 @ $16.00 Units Sold at Retail Units Unit Price Date Activities Jun-1 Beginning Inventory Jun-4 Jun-8 Jun-12 240 @ $20.00 Jun 20 Purchase 100 $19.00 Purchase Purchase 2