Autumn Company began the month of October with inventory of $16,000. The following inventory transactions occurred during the month:
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Autumn Company began the month of October with inventory of $16,000. The following inventory transactions occurred during the month:
The company purchased inventory on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $510 were paid in cash.
On October 31, Autumn paid for the inventory purchased on October 12.
During October inventory costing $18,150 was sold on account for $28,200.
It was determined that inventory on hand at the end of October cost $21,390
2. Assuming Autumn Company uses a periodic inventory system, prepare
a. The company purchased inventory on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases.
b. The inventory was shipped f.o.b. shipping point and freight charges of $510 were paid in cash.
c. On October 31, Autumn paid for the inventory purchased on October 12.
d. Record the sale of inventory on account.
e. Record the cost of goods sold.
f. Record any necessary adjusting entry when the inventory on hand at the end of October cost $21,390.
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