e following selected trensacfions were completed by Niles Co during March of the current yean Niles Co. uses the net method under a perpetual inventory system. Nan 1. Prchast merchandse from Haas Co $10,100, terms FOB shipping point, 2/10, n/eom. Prepald freight of $220 was added to the iOveice & Nerchased erohanine fom Whitman Co, $14,105, terms FOB destination, V30. 10 Ped Noas Co. for invoice of March 1. 13. Purchased merchandise from Jost Co, $12,800, terms POB destination, 2/10, 1/30, N. Ased debt memo to Jost Co. for merchandise with an involce amount of $5,000 returned from purchase on March 13 18 Purchase merchandise from Feirhurst Company, $24,620, terms FOB shipping point, nveom. 18 Peid freight of $375 on Narch 18 purchase from Fairhurst Company 19 Purchased merchandise from Bickle Co, $19,900, terms FO8 destination, 1/10, /30, 23. Peid Jost C for invoice of March 13, less debit memo of March 14 29 Paid Bickie Co. for invoice of Narch 1S 32. Peid Reirhurst Company for invoice of March 18. 33. Peid whitman Ca. for invoice of March 5.

e following selected trensacfions were completed by Niles Co during March of the current yean Niles Co. uses the net method under a perpetual inventory system. Nan 1. Prchast merchandse from Haas Co $10,100, terms FOB shipping point, 2/10, n/eom. Prepald freight of $220 was added to the iOveice & Nerchased erohanine fom Whitman Co, $14,105, terms FOB destination, V30. 10 Ped Noas Co. for invoice of March 1. 13. Purchased merchandise from Jost Co, $12,800, terms POB destination, 2/10, 1/30, N. Ased debt memo to Jost Co. for merchandise with an involce amount of $5,000 returned from purchase on March 13 18 Purchase merchandise from Feirhurst Company, $24,620, terms FOB shipping point, nveom. 18 Peid freight of $375 on Narch 18 purchase from Fairhurst Company 19 Purchased merchandise from Bickle Co, $19,900, terms FO8 destination, 1/10, /30, 23. Peid Jost C for invoice of March 13, less debit memo of March 14 29 Paid Bickie Co. for invoice of Narch 1S 32. Peid Reirhurst Company for invoice of March 18. 33. Peid whitman Ca. for invoice of March 5.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 8P: Retail Inventory Method Red Department Store uses the retail inventory method. Information relating...

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Retail Inventory Method Red Department Store uses the retail inventory method. Information relating to the computation of the inventory at Decen1ber 31, 2019, is as follows: Estimated normal shrinkage is 2% of sales. Required: Prepare a schedule to calculate the estimated ending inventory at the lower of average cost or market at December 31, 2019, using the retail inventory method. Show supporting computations in good form. Round the cost-to-retail ratio to 3 decimal places.
Show Solution: On September 1, Hydra purchased $13,300 of inventory items on credit with the terms 1/15, net 30,FOB destination. Freight charges were $280. Payment for the purchase was made on September 18.Assuming Hydra uses the perpetual inventory system and the net method of accounting for purchasediscounts, what amount is recorded as inventory from this purchase?a. $13,167 b. $13,447 c. $13,580 d. $13,300
Module 3 MI Assessment.doc Prepare journal entries to record the transactions using gross method and net method: compute for change inventory, beginning inventory, cost of sales and net purchases under each method Autumn Company provided the following transactions for the current year, the first year of operations. Purchase of merchandise at an invoice price of 4,750,000 excluding freight. Terms are 2/10, n/30. b. Freight paid, 250,000. The freight is allocated to each purchase. c. Cash payment on purchases 3,717,000 of which 1,617,000 was paid within the discount period. d. It is expected that all discounts on unpaid accounts payable will be lost. On December 31, one fifth of the merchandise remains on hand. f. Assuming at the end of the accounting period no payment was made, what is the corresponding journal I. а. е. entry. Using the information of Autumn Company: prepare journal entries to record the transactions using gross method and net method: compute for accounts receivable and…
PERIODIC registered for VAT AND us ES the Bpeterel inventory styskem. The following transachons fook place during CC Stores is mach Sales of merchan dise, Rsiso C VAT included) cash. The cost picce was R2500C ercluding vAT) 2020 JOurnalize The ABOVE TRANSACHION BANK SALES VAT OUTPUT COST OF SALES INVENTORt
Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $110,400, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,240. Shore paid freight of $2,000. Question Content Area Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - blank - Select - - Select - - Select - - Select - blank - Select - - Select - - Select - - Select - blank - Select - - Select - - Select - - Select - Question Content Area Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - blank - Select - - Select - - Select - -…
Purchase-related transcations using perpetual inventory system The following. selected transactions were completed by Betz Company during July of the current year: July 1. Purchased merchandise from Sabot Imports Co,$20,500.terms FOB destination,N/30. 3. purchased merchandise from Saxon Co ,$12.000.terms FOB shipping point 2/10.n/eom.Prepaid frieght of $75 was added to the invoive. 5. purcgased merchandise from Schnee Co.$8,000,terms FOB destination.2/10,n/30. 6. Issued debit memo to Schnee Co. for merchandise with an invoice amount of $1,500 returned from purchases on July 5. 13. Paid Saxon Co for invouce of July 3. 14. Paid Schnee Co.for invouve of July 4, less debit memo of july 6. 19. Purchased merchandies from Southmont Co,$18,900,terms FOB shipping point n/eom. 19. paid freight of $140 on July 19 from Southmont Co. 20. Purchased merchandise from Stevens Co,$33,000,terms FOB destination.1/10, n/30. 30.Paid Stevens Co for invove of July 20. 31. Paid Salot Imports Co.for invoice of…
Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,500, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,900. Shore paid freight of $2,000. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. Accounts Receivable-Blue Star Co. 109,270 Sales 109,270 Cost of Goods Sold 66,900 Inventory 66,900 Accounts Receivable-Blue Star Co. 2,000 Cash 2,000 Cash Accounts Receivable-Blue Star Co. Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank. Inventory Accounts Payable-Shore Co.
Purchase-related transactions using perpetual inventory system The following selected transactions were completed by Niles Co. during March of the current year: Mar. 1. Purchased merchandise from Haas Co., $43,250, terms Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.FOB shipping point, 2/10, n/eom. Prepaid freight of $650 was added to the The bill that the seller sends to the buyer.invoice. 5. Purchased merchandise from Whitman Co., $19,175, terms Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.FOB destination, n/30. 10. Paid Haas Co. for invoice of March 1. 13. Purchased merchandise from Jost Co., $15,550, terms FOB destination, 2/10, n/30. 14. Issued A form used by a buyer to inform the seller of the amount the buyer proposes to debit to the account payable due the seller.debit memo to Jost Co. for merchandise with an invoice amount of $3,750…
Bisson Corp unes a perpetual inventory system. The company had the following inventory transactions in Apr Purchased merchandise from Groupe Lad for $28.560, terma n/30 Fl shipping point The appropriate company paid freight costs of $714 on the merchandine purchased on April 3 7 Purchased supplies on account for $5.100 Apr 3 30 1. 2 3 Returned merchandise to Grouper and received a credit of $3.570 The merchandise was returned to inventory for future rese Paid the amount due to Grouperin ful Additional information: The cost of the merchandise sold on Aprit 3 was $19.380. Grouper expected a return rate of 15% The cost of the merchandise returned on April was $2.346 Grouper uses a perpetual inventory system Record the transactions in the books of Grouper Lht all debit entries before credit entries. Cet account des ant automatically indented when the amount is entered De not indent manually if ne entry is requirest, select "No Entry for the account titles and enter Ofor the amounts econd…
Instructions The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system. July 1 Purchased merchandise from Sabol Imports Co., $13,377, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $230 was added to the invoice. Purchased merchandise from Schnee Co., $14,350, terms FOB destination, 2/10, n/30. Issued debit memo to Schnee Co. for merchandise with an invoice amount of $5,000 returned from purchase on July 5. 13 Paid Saxon Co. for invoice of July 3. 14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6. 19 Purchased merchandise from Southmont Co., $25,850, terms FOB shipping point, n/eom. 19 Paid freight of $430 on July 19 purchase from Southmont Co. 20 Purchased merchandise from Stevens Co., $23,000, terms FOB destination, 1/10, n/30. 30 Paid Stevens Co. for invoice of July 20.…
Purchase-related transactions using perpetual inventory system The following selected transactions were completed by Niles Co. during March of the current year: Mar. 1. Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $650 was added to the invoice. 5. Purchased merchandise from Whitman Co., $19,175, terms FOB destination, n/30. 10. Paid Haas Co. for invoice of March 1. 13. Purchased merchandise from Jost Co., $15,550, terms FOB destination, 2/10, n/30. 14. Issued debit memo to Jost Co. for $3,750 of merchandise returned from purchase on March 13. 18. Purchased merchandise from Fairhurst Company, $13,560, terms FOB shipping point, n/eom. 18. Paid freight of $140 on March 18 purchase from Fairhurst Company. 19. Purchased merchandise from Bickle Co., $6,500, terms FOB destination, 2/10, n/30. 23. Paid Jost Co. for invoice of March 13, less debit memo of March 14. 29. Paid Bickle Co. for invoice of March 19. 31.…
Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Niles Co. during March of the current year: Mar. 1. Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $650 was added to the invoice. 5. Purchased merchandise from Whitman Co., $19,175, terms FOB destination, n/30. 10. Paid Haas Co. for invoice of March 1. 13. Purchased merchandise from Jost Co., $15,550, terms FOB destination, 2/10, n/30. 14. Issued debit memo to Jost Co. for $3,750 of merchandise returned from purchase on March 13. 18. Purchased merchandise from Fairhurst Company, $13,560, terms FOB shipping point, n/eom. 18. Paid freight of $140 on March 18 purchase from Fairhurst Company. 19. Purchased merchandise from Bickle Co., $6,500, terms FOB destination, 2/10, n/30. 23. Paid Jost Co. for invoice of March 13, less debit memo of March 14. 29. Paid Bickle Co. for invoice of March 19. 31.…