1. Record purchases GROSS OR NET- example using purchase of $800 of inventory, terms 2/10, n30 - both periodic and perpetual inventory systems. A. Pay vendor within the discount period B. Pay vendor after discount period expires C . Record return of goods and associated reduction of A/P or cash refund

1. Record purchases GROSS OR NET- example using purchase of $800 of inventory, terms 2/10, n30 - both periodic and perpetual inventory systems. A. Pay vendor within the discount period B. Pay vendor after discount period expires C . Record return of goods and associated reduction of A/P or cash refund

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Journalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $14,000 with terms 2/10, net 30. The cost of the goods sold was $9,100. If an amount box does not require an entry, leave it blank. b. Received payment within the discount period. If an amount box does not require an entry, leave it blank.
Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes: Multiple Choice a debit to Purchases and a credit to Accounts Receivable. a debit to Purchases and a credit to Accounts Payable. a debit to Accounts Payable and a credit to Purchases. a credit to Purchases and a credit to Accounts Payable.
Under the perpetual inventory system, which of the following accounts is credited in the adjusting entry to reflect the expected amount of merchandise that will be returned? a. Merchandise Inventory b. Cost of Goods Sold c. Sales Returns and Allowances d. Estimated Returns Inventory
Account Titles and Explanation (To record the premium inventory) (To record the sales) (To record the expense associated with the sale) (To record the premium liability) Debit 11 Credit 1000
Which inventory system records both sales and cost of goods sold at the point of sale? Group of answer choices Periodic LIFO Perpetual FIFO
31. Under a perpetual inventory system, a.a physical count is required to determine cost of merchandise on hand b.increases in inventory resulting from purchases are debited to Purchases c.accounting records continuously disclose the amount of inventory d.the purchases returns and allowances account is credited when goods are returned to vendors
Sales revenue Purchases Net income as a percent of sales revenue Beginning inventory Expenses including income taxes Tax rate a. Required a. Prepare the company's single-step income statement. b. Prepare the journal entry at period-end to eliminate beginning inventory and to record ending inventory. Note: Do not use negative signs with your answers. Income Statement Sales revenue Cost of goods sold: Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross margin Expenses Income before taxes Income taxes Net income $ $ $440,000 $308,000 $ 15% $55,000 $99,000 25% 440,000 55,000 308,000 X 0 x 0 x 0 x x 0 x 0 x 0 x
4-55 E4-19 (Supplement 6A) Recording Journal Entries for Purchases and Purchase Discounts (Gross Method) Using a Perpetual Inventory System Part 1 Using the information in E4-7, prepare journal entries to record the transactions, assuming Axe records discounts using the gross method in a perpetual inventory system. Jan. 6 Purchased goods for $1,200 from Green with terms 2/10, n/30. 6 Purchased goods from Munoz for $900 with terms 2/10, n/30. 14 Paid Green in full. Feb. 2 Paid Munoz in full. 28 Purchased goods for $350 from Reynolds with terms n/45.
Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. N 2. 3. 4. 5. 6. 7. 8. 9. 10. 3. For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account items in alphabetical order. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 4. (a) Item Basic Type of Account 1. Asset 2. 5. 6. 7. 8. Buyer: Purchase of $2,940 of inventory for cash. Buyer: Return of $630 of inventory to seller for credit on account. Buyer: Purchase of $3,360 of inventory on…
inventory as your base numper and adjust the couss amount to the required amount to make the Total Goods Available for Sale to the total of the Value of the ending inventory and the COGS total. Negative value should be indicated with minus sign. Round your intermediate and final answers to 2 decimal places.) \table[[Date,, \table [[Purchases/Transportation - In /], [(PurchaseReturns/Discounts)]], \table [[Cost of Goods Sold/(Returns to], [Inventory)]], Balance in Inventory], [Units, Cost/Unit, Total $, Units, Cost/Unit, Total $, Units, \table[[Avg], [ Cost/Unit]], Total $], [Mar., Brought Forward,,r, 61, $, 93.00, $, 5, 673.00 Telamark Company uses the moving weighted average method for inventory costing. Required: The following incomplete inventory sheet regarding Product W506 is available for the month of March 2023. Complete the inventory sheet. (Use the value of the ending inventory as your base number and adjust the COGS $ amount to the required amount to make the Total Goods…
The trade discount on purchases is recorded A. O When it is received B.When the inventory is purchased C.When the inventory is sold D. O Not at all recorded in the books
Journalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $14,900 with terms 2/10, net 30. The cost of the goods sold was $9,685. If an amount box does not require an entry, leave it blank. b. Received payment within the discount period. If an amount box does not require an entry, leave it blank.