A subsidiary sells merchandise to its parent at a markup of 25 percent on cost. The parent's beginning inventory includes $31,250 in merchandise purchased from the subsidiary. The subsidiary sells $500,000 retail value merchandise to the parent during the year. The parent's ending inventory includes $37,500 in merchandise purchased from the subsidiary. Eliminations (I) for intercompany merchandise sales have a net effect of decreasing ending inventory by what amount? A) $1,250 B) $6,250 C) $7,500 D) $13,750

Fall Company began operations in the current year. The entity used perpetual inventory system. 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination. 2. Fall Company paid freight charge of P50,000. 3. During the year, Fall Company paid for 80% of the merchandise within the discount period. 4. The remaining 20% was paid beyond the discount period. 5. Fall Company sold 70% of the merchandise it acquired for cash of P1,200,000. The other 30% remained in inventory at year-end.   Required: Prepare journal entries to record the transacions using gross method and net method.

Fall Company began operations in the current year. The entity used perpetual inventory system.1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000. All purchases were made under the terms 2/10, n/30, FOB destination.2. Fall Company paid freight charge of P50,000.3. During the year, Fall Company paid for 80% of the merchandise within the discount period.4. The remaining 20% was paid beyond the discount period.5. Fall Company sold 70% of the merchandise it acquired for cash of P1,200,000. The other 30% remained in inventory at year-end. Required:Prepare journal entries to record the transactions using gross method and net method.

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X Company accepts goods on consignment from C Company, and also purchases goods from P Company during the current month. X Company plans to sell the merchandise to customers during the following month. In each of these independent situations, who owns the merchandise at the end of the current month, and should therefore include it in their companys ending inventory? Choose X, C, or P. A. Goods ordered from P, in transit, with shipping terms FOB destination. B. Goods ordered from P, in transit, with shipping terms FOB shipping point. C. Goods ordered from P, inventory in stock, held in storage until floor space is available. D. Goods ordered from C, inventory in stock, set aside for customer pickup and payments to finalize sale.

At the beginning of current year, Cavalier Company reported Problem 14-4 (PHILCPA Adapted) During the current year, the entity registered the following At the beginning of current year, Cavalier Company reported inventory of P1,000,000 at retail and P560,000 at cost. During the current year, the entity registered the followine purchases: Cost Retail price Original markup 4,000,000 6,200,000 2,200,000 The net sales totaled P5,400,000. The following reductions were made in the retail price: To meet price competition To dispose of overstock Miscellaneous reductions 50,000 30,000 120,000 During the current year, the selling price of a certain inveritory increased from P200 to P300. This additional markup applied to 5,000 items but was later canceled on the remaining 1,000 items. What is the ending inventory using the average cost approach in applying the retail method? a. 2,000,000 b. 2,400,000 c. 1,240,000 d. 1,200,000

Gatekeeper Company has two products with cost and selling prices as follows: Product X Product Y Selling price Estimated selling cost 2,000,000 600,000 3,000,000 700,000 Materials and conversion 1,500,000 1,800,000 cost General administration cost 300,000 800,000 At year-end, the manufacture of inventory has been completed but no selling cost has been incurred. Question 1: Under the LCNRV by individual item, the inventory shall be measured at what amount? Question 2: Under the LCNRV by total, the inventory shall be measured at what amount?

The transactions listed below are typical of those involving New Books Inc. and Readers' Corner. New Books is a wholesale merchandiser and Readers' Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers' Corner are made with terms 2/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. nded Aus a. New Books sold merchandise to Readers' Corner at a selling price of $550,000. The merchandise cost New Books $415,000. b. Two days later, Readers' Corner complained to New Books that some of the merchandise differed from what Readers' Corner had ordered. New Books agreed to give an allowance of $10,000 to Readers' Corner. c. Just three days later, Readers' Corner paid New Books, which settled all amounts owed. Required: 1. For each of the events (a) through (c), indicate the amount and direction of the effect on New Books…

What is the journal entry for Subsidiary if it sold an inventory bought at $300 to its Parent company at a price of $200?

The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. 1 Summit Company sold merchandise on account to Beartooth Co., $49,050, terms FOB destination. 2/15, n/eom. The cost of the goods sold was $28,370. Summit Company paid freight of $1,160 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $68,590, terms FOB shipping.point, Aug. 2 5 n/eom. The cost of the goods sold was $43,250. 9 Beartooth Co. paid freight of $2,440 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $59,500, terms FOB shipping point, n/45. Summit paid freight of $1,755, which was added to the invoice. The cost of the goods sold was $31,720. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a cash refund of $1,100 for…