1. Home office bills its branch for merchandise shipments at 25% above cost. The following are some of the account balances appearing on the books of the home office and its branch as of December 31, 2022- Home Office Books Branch Books Inventory, Jan 1 P 35.000 P 48.000 Shipments from home office 280,000 Shipments to branch 240.000 Inventory allowance 66,000 The beginning inventory of the branch included goods from home office of P30,000 at billing price. Its ending inventory of P 72.000 includes goods from other suppliers costing P 16,000. 1. How much shipments are still in transit or not yet recorded by branch? How much must be the ending inventory of the branch at cost?

1. Home office bills its branch for merchandise shipments at 25% above cost. The following are some of the account balances appearing on the books of the home office and its branch as of December 31, 2022- Home Office Books Branch Books Inventory, Jan 1 P 35.000 P 48.000 Shipments from home office 280,000 Shipments to branch 240.000 Inventory allowance 66,000 The beginning inventory of the branch included goods from home office of P30,000 at billing price. Its ending inventory of P 72.000 includes goods from other suppliers costing P 16,000. 1. How much shipments are still in transit or not yet recorded by branch? How much must be the ending inventory of the branch at cost?

Name: 1. Home office bills its branch for merchandise shipments at 25% abov
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: 1. Home office bills its branch for merchandise shipments at 25% above cost. The following are some of the account balances appearing on the books of the home office and its branch asof December 31, 2022:Home OfficeBranch BooksBooksInventory, Jan. 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account with terms of 5/7, n/20. Which of the following correctly records the payment made 15 days after the date of invoice? A. Accounts Payable 1,130,000 Merchandise Inventory 1,130,000 B. Accounts Payable 1,130,000 Merchandise Inventory 56,500 Cash 1,073,500 C. Accounts Payable 1,130,000 Cash 1,130,000 D. Cash 1,130,000 Accounts Payable 1,130,000
Presented are transactions of Lei Electrical Supplies for the month of June. Record all transactions using the Periodic Inventory assuming credit terms on sales extended to customers are 2/10, n/30. June 4 Cash Purchases from Colombia Manufacturing, P1,000,000. 8 Cash sales to various customers, P125,000. 9 Refunded P11,000 for merchandise returns. 10 Sold Merchandise to Heir Supply, P55,000. 11 Granted 10% allowance to Heir Supply due to wrong specifications. 12 Sold Merchandise to Viber Co., P300,000. 15 Cash Sales to Architect Kate P220,000. 16 Purchased Merchandise on Account from Kenny Logs, P100,000. 18 Heir Supply Settled its account in full. 24 Viber Co. settled its account in full. 30 Settled account with Kenny Logs in full. REQUIREMENTS: Using this Account Titles Cash, Accounts Receivable, Accounts Payable, Purchases, Sales, Sales Returns and Allowances, Sales Discount, Income Summary and Lei, Capital 1. PREPARE JOURNAL ENTRIES AND CLOSING ENTRIES. 2. POSTING JOURNAL ENTRIES…
ss
December 22 - Dec. 22 Sold merchandise on account, $12,900 with terms 2/10, net 30. The cost of the goods sold was $8,385. Dec. 31 Received payment within the discount period. Required: Journalize the above merchandise transactions. The company uses the perpetual inventory system. Refer to the chart of accounts for the exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521…
A seller uses a perpetual inventory system and on April 4 it sells $5,000 in merchandise with a cost of $2,400 to a customer on credit terms of 3/10, n/30.
Bookmoto Marketing has the following transactions for the month of March, 200x: Mar 2 - Sold merchandise on account, P700,000; terms 10; 5/15, n/30. FOB destination, freight collect, P15,000 Mar 10 - Received sales returns, P25,000 from March 2 sales Mar 15 - Collected sales on March 2 Mar 26 - Sold goods on account, P560,000. FOB, shipping point, freight collect, P36,000 Required: Journalize the above transactions using PERPETUAL METHOD (Assume that cost of sales is 60% of the invoice price)
Journalize the following inventory merchandise transactions for both Sampson and Batson, assuming that the both Sampson and Batson uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45. The cost of the merchandise sold is $25,650. 6 Batson Co. paid the invoice within the discount period.
February 1, Adams Company sold merchandise on credit with a list price of $8,400. Terms were 3/15, n/45. Which of the following entries correctly applies the indicated method to receive the appropriate customer payment on February 12? Gross Price Method Cash 8,148 Accounts Receivable 8,148 Net Price Method Cash 8,400 Sales Revenue 252 Accounts Receivable 8,148 Gross Price Method Cash 8,400 Accounts Receivable 8,400 Net Price Method Cash 8,148 Accounts Receivable 8,148
The Stilton Company has the following inventory and credit purchases during the fiscal year ended December 31, 2023. Beginning Feb. 10 Aug. 21 640 units @ $75/unit 350 units @ $72/unit 230 units @ $85/unit Stilton Company has two credit sales during the period. The units have a selling price of $135 per unit. Sales Mar. 15 430 units Sept. 10 335 units Stilton Company uses a perpetual inventory system. Required: 1. Calculate the dollar value of cost of goods sold and ending inventory using: (Do not round intermediate calculations. Round "Average cost per unit" to 2 decimal places. Round the final answers to 2 decimal places.) Ending Inventory Cost of Goods Sold a FIFO b. Moving weighted average
The following information applies to the Grady Company for the current year: Purchases of merchandise for resale $300,000 Merchandise returned to vendor 3,000 Interest on notes payable to vendors Freight-in on merchandise 6,000 7,500 Grady's inventory costs for the year would be: a. $297,000 b. $300,000 c. $304,500 d. $316,500
Mc Graw Hill Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $3,400 (that had cost $2,513) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.) View transaction list 1 2 Sold merchandise for $6,400 (that had cost $4,147) and accepted the customer's Continental Card. Continental charges a 2.5% fee. 3 Sold merchandise for $3,400 and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. Record the cost of goods sold, $2,513. Sold merchandise for $6,400 and accepted the customer's Continental Card. Continental charges a 2.5% fee. 4 Record the cost of goods sold, $4,147. Note : = journal entry has been entered EX ank Card. Credit >
Present the Journal entries in the books of Greenland Supplies Co. and the corresponding Journal entry in the book of its its suppliers for all of the transactions related to the following purchase invoices. Assume that Greenland Supplies Co. and its suppliers use the periodic inventory system. Supplier: Three Stars Co. P20,000 Date of Invoice: May 13 Freight P200 Credit Terms: 2/10, n/30 Freight terms: FOB Shipping Point Freight paid by: Greenland Supplies Co. Date Account paid: May 25 Supplier: Sterling Paper Products P12,000 Date of Invoice: May 17 Freight P100 Credit terms: 2/10, 1/15, n/30 Freight terms: FOB Destination Freight…