1. On January 1, 2022 the company purchased 200,000 materials on account, with terms: 6%, 5/20, n/60. Compute the amount of purchase in a Periodic Inventory System on January 1. 2. In connection with number 1, if on January 15, the payment is made, how much is the recorded Purchase discount in the Perpetual Inventory System? 3. On February 3, the company purchased materials amounting to 950,000 on account. Transportation costs amounted to 5,000. Terms: 8%, 3/15, n/60. Using the Perpetual Inventory System, how much is the recorded purchases on February 3? 4. On February 3, how much is the Raw Materials Inventory using the Perpetual Inventory System?
1. On January 1, 2022 the company purchased 200,000 materials on account, with terms: 6%, 5/20, n/60. Compute the amount of purchase in a Periodic Inventory System on January 1. 2. In connection with number 1, if on January 15, the payment is made, how much is the recorded Purchase discount in the Perpetual Inventory System? 3. On February 3, the company purchased materials amounting to 950,000 on account. Transportation costs amounted to 5,000. Terms: 8%, 3/15, n/60. Using the Perpetual Inventory System, how much is the recorded purchases on February 3? 4. On February 3, how much is the Raw Materials Inventory using the Perpetual Inventory System?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. On January 1, 2022 the company purchased 200,000 materials on account, with terms: 6%, 5/20, n/60. Compute the amount of purchase in a Periodic Inventory System on January 1.
2. In connection with number 1, if on January 15, the payment is made, how much is the recorded Purchase discount in the Perpetual Inventory System?
3. On February 3, the company purchased materials amounting to 950,000 on account. Transportation costs amounted to 5,000. Terms: 8%, 3/15, n/60. Using the Perpetual Inventory System, how much is the recorded purchases on February 3?
4. On February 3, how much is the Raw Materials Inventory using the Perpetual Inventory System?
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