None 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 asfollows: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 saleswere made during January and February. Calculate the cost of inventory as of February 28.Cost of Inventory

Explanation: Cost of inventory will be calculated by adding the amount of purchases net of discount,…

Answered: E6-7 (Algo) Reporting Purchases and…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

See similar textbooks

Similar questions

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
ss
Give me perfect answer with explanation
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
During the months of January, Pearson Corporation sold goods to customers. Assume Pearson uses a perpetual inventory system.. The sequence of events was as follows: Date Transaction Jan.6 Sold goods for $1250 to Kate Inc. with terms 2/15, n/30. The goods cost Pearson $440. Jan 10 Sold goods to Randall Corp for $1810 with terms 2/15, n/30. The goods cost Pearson $790. Jan 19 Collected cash due from Kate Inc. What is the net sales from these transactions?

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS