Explorer Scopes sells state-of-the-art relescopes to individuais and organizations interested in studying the solar systern At December 31 last year, the company's inventory amounted to $120,000. During the first week of January this year, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Sold one telescope costing $37,200 to Centfal State University for cash. $62,000. Jan. 5 Purchased merchandise on account from Luriar Optics, S80,000. Terms, net 30 days. Instructions a. Prepare joumal entries to record these transactions. assuming that Explorer Scopes uses the perpetual inventory system. Use separate entries to record the sales revenue and the cost of goods sold for the sale on January 2. b. Compute the balance of the Iaventory account on January 7. c. Prepare journal entries to record the two transactions, assuming that Explorer Scopes uses the periodic inventory system.

Explorer Scopes sells state-of-the-art relescopes to individuais and organizations interested in studying the solar systern At December 31 last year, the company's inventory amounted to $120,000. During the first week of January this year, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Sold one telescope costing $37,200 to Centfal State University for cash. $62,000. Jan. 5 Purchased merchandise on account from Luriar Optics, S80,000. Terms, net 30 days. Instructions a. Prepare joumal entries to record these transactions. assuming that Explorer Scopes uses the perpetual inventory system. Use separate entries to record the sales revenue and the cost of goods sold for the sale on January 2. b. Compute the balance of the Iaventory account on January 7. c. Prepare journal entries to record the two transactions, assuming that Explorer Scopes uses the periodic inventory system.

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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