Task #2:Narrative:Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system.All sales returns from customers result in goods being returned to inventory, if it is not damaged.You are provided with the following information for Avtosh LLC for the month of November, 2021.Assume that all amounts are settled in cash, no credit transactions.|Description1-Nov Beginning inventory6-Nov PurchaseQuantity Unit cost or selling price$14,000$15,000$21,000Date701208-Nov Sale8012-Nov Sale return*10$21,000$19,000$19,00015-Nov Purchase4016-Nov Purchase return520-Nov Sale100$26,00025-Nov Purchase50$16,000*includes two damaged car which has scrap value estimated to be at 20% of the its purchase priceInstruction:|- Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following:a) cost of goods soldb) ending inventoryc) gross profit|- Compare the results of each inventory valuation method|- For each date, prepare journal entry (using AVCO method only) the Company should post to reflect the transaction

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Description: Task #2:Narrative:Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system.All sales returns from customers result in goods being returned to inventory, if it is not damaged.You are provided wi

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Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system. All sales returns from customers result in goods being returned to inventory, if it is not damaged. You are provided with the following information for Avtosh LLC for the month of November, 2021. Assume that all amounts are settled in cash, no credit transactions. Description 1-Nov Beginning inventory Quantity Unit cost or selling price $14,000 $15,000 $21,000 $21,000 $19,000 Date 70 6-Nov Purchase 120 8-Nov Sale 80 12-Nov Sale return* 10 15-Nov Purchase 40 $19,000 $26,000 $16,000 16-Nov Purchase return 5 100 50 20-Nov Sale 25-Nov Purchase *includes two damaged car which has scrap value estimated to be at 20% of the its purchase price Instruction: - Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following: a) cost of goods sold b) ending inventory c) gross profit

Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system. All sales returns from customers result in goods being returned to inventory, if it is not damaged. You are provided with the following information for Avtosh LLC for the month of November, 2021. Assume that all amounts are settled in cash, no credit transactions. Description 1-Nov Beginning inventory Quantity Unit cost or selling price $14,000 $15,000 $21,000 $21,000 $19,000 Date 70 6-Nov Purchase 120 8-Nov Sale 80 12-Nov Sale return* 10 15-Nov Purchase 40 $19,000 $26,000 $16,000 16-Nov Purchase return 5 100 50 20-Nov Sale 25-Nov Purchase *includes two damaged car which has scrap value estimated to be at 20% of the its purchase price Instruction: - Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following: a) cost of goods sold b) ending inventory c) gross profit

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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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Task #2:
Narrative:
Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system.
All sales returns from customers result in goods being returned to inventory, if it is not damaged.
You are provided with the following information for Avtosh LLC for the month of November, 2021.
Assume that all amounts are settled in cash, no credit transactions.
|Description
1-Nov Beginning inventory
6-Nov Purchase
Quantity Unit cost or selling price
$14,000
$15,000
$21,000
Date
70
120
8-Nov Sale
80
12-Nov Sale return*
10
$21,000
$19,000
$19,000
15-Nov Purchase
40
16-Nov Purchase return
5
20-Nov Sale
100
$26,000
25-Nov Purchase
50
$16,000
*includes two damaged car which has scrap value estimated to be at 20% of the its purchase price
Instruction:
|- Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following:
a) cost of goods sold
b) ending inventory
c) gross profit
|- Compare the results of each inventory valuation method
|- For each date, prepare journal entry (using AVCO method only) the Company should post to reflect the transaction

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