E6-7 (Algo) Reporting Purchases and Purchase Discounts Using a Perpetual Inventory System [LO 6-3] During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $1,900 from Green with terms 3/12, n/45. January 6 Purchased goods from Munoz for $1,250 with terms 3/12, n/45. January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $700 from Reynolds with terms n/45. Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Cost of Inventory

E6-7 (Algo) Reporting Purchases and Purchase Discounts Using a Perpetual Inventory System [LO 6-3] During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $1,900 from Green with terms 3/12, n/45. January 6 Purchased goods from Munoz for $1,250 with terms 3/12, n/45. January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $700 from Reynolds with terms n/45. Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Cost of Inventory

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
E6-8 (Algo) Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,300 from Diamond Incorporated with terms 2/15, n/60. June 5 Returned goods costing $1,200 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,100 with terms 2/15, n/60. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost of Inventory
es E6-8 (Static) Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,100 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $1,100 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,000 with terms 2/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. Cost of Inventory
E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 5 6 11 lo son 22 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30. Returned goods costing $1,100 to Diamond Inc. for credit on account. Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30. Paid the balance owed to Diamond Inc. Paid Club Corp. in full. 200 boog bil TOINE LO 6-3 are charged to Other Operating Expenses. sh basil gors rirw smuraa seib E6-21 (Supplement 6A) Recording Journal Entries for Purchases, Purchase Discounts (Gross Method), and Purchase Returns Using a Perpetual Inventory System sa Using the information in E6-8, prepare journal entries to record the transactions, assuming Ace records discounts using the gross method in a perpetual inventory system. LO
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Pharoah Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Pronghorn Ltd. for $32,000, terms 2/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $800 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,200. 8 Returned merchandise to Pronghorn and received a credit of $3,000. The merchandise was returned to inventory for future resale. 30 Paid the amount due to Pronghorn in full. Additional information: 1. The cost of the merchandise sold on April 3 was $21,700. 2. The cost of the merchandise returned on April 8 was $1,950. 3. Pronghorn uses a perpetual inventory system. Record the transactions in the books of Pronghorn. (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 0 for the amount in the relevant debit OR credit…
E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,500 from Diamond Inc. with terms 2/12, n/45. 5 Returned goods costing $1,300 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,200 with terms 2/12, n/45. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April:April 12 - Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point.April 13 - Received a billing from Orange Freight Lines for $300 for the April 12 purchase.April 15 - Returned $1,000 of merchandise from the April 12 purchase.April 20 - Paid balances due from April 12 purchase.Required:Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Sarasota Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from DeVito Ltd. for $24,080, terms n/30, FOB shipping point. The appropriate company paid freight costs of $602 on the merchandise purchased on April 3. Purchased supplies on account for $4,300. Returned merchandise to DeVito and received a credit of $3,010. The merchandise was returned to inventory for future resale. Paid the amount due to DeVito in full. 6 here to search 7 8 30 Record the above transactions in Sarasota's books. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit 18°C Sunny