At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November. November 2 Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $320. November 9 Return 16 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,700. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) Required: 1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record purchase of 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. Note: Enter debits before credits. Date General Journal Debit Credit November 02

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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At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November.

November	2	Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30.
November	3	Pay cash for freight charges related to the November 2 purchase, $320.
November	9	Return 16 defective units from the November 2 purchase and receive credit.
November	11	Pay Toad Inc. in full.
November	16	Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.]
November	20	Receive full payment from customers related to the sale on November 16.
November	21	Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30.
November	24	Sell 70 units of inventory to customers for cash, $7,700. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.)

Required:
1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record purchase of 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30.

Note: Enter debits before credits.