3. The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher net profit. What should you do?

3. The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher net profit. What should you do?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 2A: You are the bookkeeper at a small merchandising firm. You are comparing the income statements from...

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The president of your company wants you to count merchandise inventory from the factory in preparation for a visit from stockholders. The president asks you to make the inventory a bit heavy by counting one row twice to cause the net income to show a higher number. What should you do?
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Required 1. Assume that Urban One sells a $300 gift certificate to a customer, collecting the $300 cash in advance. Prepare the journal entry for (a) collection of the cash for delivery of the gift certificate to the customer and (b) revenue from the subsequent delivery of merchandise when the gift certificate is used. 2. How can keeping less inventory help to improve Urban One's profit margin? 3. Cathy Hughes understands that many companies carry considerable inventory, and she is thinking of carrying additional inventory of merchandise for sale. Cathy desires your advice on the pros and cons of carrying such inventory. Provide at least one reason for, and one reason against, carrying additional inventory.
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2. On March 23, goods that were originally purchased for $10,000 were sold for $20,000 cash. A week later, the dissatisfied customer returned the goods. Prepare the journal entry to properly record the return of the goods. Remember, you can think of this as two transactions: reversing a sale through a sales return, and the customer physically returning inventory to the company.
after analyzing the skeletal profit and loss statement, a retailer is suffering a loss. list three ways and give examples of what they can do to turn the loss into profit. (Please explain)
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II. TRUE OR FALSE Directions: Read each sentence carefully and determine whether the statement is TRUE or FALSE Write your answers on the space provided before each number. 1. liventory is the most importaní asset of a merchandising firm. 2. The sales journal can be used to record sales with immediate cash payments. 3. Under the sale term /10, net 30, the discount is valid until the 10th dav from the date of purchase. 4. Inventories are assets acquired which are held for sale in the ordinary course of the business. 5. Postings to the ledger shall be made on a chronological! order. 6. Information in subsidiary ledgers may come from special journals or the general journal. 7. Paying freight on merchandise sold increases the business' total assets. 8. The purchase of merchandise will increase cost of goods sold under the periodic inventory system, regardless of whether the purchase vas made on cash basis or on account.
You are an owner/bookkeeper in a country whose economy has been nearly destroyed. Goods are scarce. In fact, you have no goods to sell at the start of each day. You go out early each morning to purchase goods and haul them back to sell. At the end of the day, you have sold everything. Prepare a Cost of Goods Sold section for a day when you purchased 400 in goods. What conclusion can you draw?
I. Solve the following problem using MS Excel In many situations, a retailer may not compile a profit or loss statement for individual departments. Suppose that you are a retail buyer, and you decide to recreate the statement for your own department using the following data: Gross sales of $72,300.00, net sales of $60,900.00, opening inventory of $13,900.00, ending inventory of $19,400.00, purchases of $14,000.00, inward freight of 2%, cash discounts of 5%, returns to vendors of $500.00, alterations and workroom costs of 3%, direct expenses of $19,600.00 and total expenses worth $35,000.00, complete the profit or loss statement.(Hint: Remember that freight and cash discount %’s are calculated as % of Purchases, while the alteration/workroom costs % is expressed as % of NS).
Can you assist me with FIFO, LIFO, and the Waited Average Cost? I would love to see how you did the math when getting the cost of goods sold and the ending inventory. I am most confused about the waited average cost method. Thank you