Applying LCM, NeCo determines that as of Dec. 31, 20x3, merchandise that originally cost $46,300 is now $43,500 at market. a. Make no entry but disclose the loss in a note on the financial statement. b. Make no entry and make no disclosure c. Make an entry to reduce retained earnings. d. Make an entry to increase cost of goods sold

Applying LCM, NeCo determines that as of Dec. 31, 20x3, merchandise that originally cost $46,300 is now $43,500 at market. a. Make no entry but disclose the loss in a note on the financial statement. b. Make no entry and make no disclosure c. Make an entry to reduce retained earnings. d. Make an entry to increase cost of goods sold

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize...

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A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods sold
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
How would Bedrock Wholesale record the October 18 transaction? a. Decrease Cash and increase Inventory b. Decrease Cash and increase Freight Expense c. Increase both Accounts Payable and Freight Expense d. Decrease both Cash and Inventory e. No entry is required. Enter the letter that corresponds to your choice. (A B C D E) How would Bedrock Wholesale record the October 22 transaction? a. Increase Inventory and decrease Cost of Goods Sold $3,000 each, and decrease Accounts Receivable and increase Sales Returns $2,250 each b. Increase Inventory and decrease Cost of Goods Sold $2,250 each, and decrease Accounts Receivable and increase Sales Returns $3,000 each c. Increase Inventory and decrease Cost of Goods Sold $2,250 each, and decrease Accounts Receivable and increase Sales Returns $2,250 each d. Increase Inventory and decrease Cost of Goods Sold $2,250 each e. Decrease Accounts Receivable and increase Sales Returns $3,000 each Enter the letter that corresponds to your…
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(b) Inventory May 3 (To record cost of goods sold) Date Account Titles and Explanation May 3 On May 3, merchandise with a selling price of $1,260 was returned by Valez. The goods had a cost of $960 and they were restored to inventory. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (To record sales returns) (To record cost of goods returned) Debit 24000 Attempts: 1 of 1 used Credit
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Calculate the missing amounts. (Loss amounts should be Indicated with a minus sign and input all other amounts as positive velues. Do not round Intermedlate calculations. Round "Gross profit ratio" to 2 decimal places.) Company A Company B 2020 2019 2020 2019 Sales 263,000 187,000 48,500 Sales discounts 2,630 1,200 570 Sales returns and allowances Net sales 16,700 6,200 168,950 45,500 Cost of goods sold 157,100 57,700 Gross profit from sales 51,700 49,100 22,100 Selling expenses 18,620 19,700 25,700 Administrative expenses 26,300 30,400 9,700 Total operating expenses 47,400 Profit (loss) 15,100 2,700 Gross profit ratio % %
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