Find the COGS and ending inventory for the following purchases in FIFO, LIFO and Average Cost Ending inventory was 500 units Complete the journal entries for both the buyer and seller for each transaction listed 1. Seller sells Buyer $2800 in goods on account. The cost of these goods to the seller was $2000.
Find the COGS and ending inventory for the following purchases in FIFO, LIFO and Average Cost Ending inventory was 500 units Complete the journal entries for both the buyer and seller for each transaction listed 1. Seller sells Buyer $2800 in goods on account. The cost of these goods to the seller was $2000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete the journal entries for both the buyer and seller for each transaction listed
Find the COGS and ending inventory for the following purchases in FIFO, LIFO and Average Cost
Ending inventory was 500 units
1. Seller sells Buyer $2800 in goods on account. The cost of these goods to the seller was $2000.
Units
Cost
BUYER
SELLER
1-Jan Beginning Inventory
150
10
1500
Account
Debit
Credt
Account
Debit
Credt
5-Mar Purchase
250
2250
2-Jun Purchase
100
11
1100
8-Jul Purchase
200
10
2000
6-Sep Purchase
100
12
1200
5-Nov Purchase
350
10
3500
2. Buyer pays shipping costs of $150 in cash for this purchase.
1150
11550
BUYER
SELLER
Account
Debit
Credt
Account
Debit
Credt
3. Buyer returns $500 in goods. The cost of these goods to the seller was $357.
BUYER
SELLER
Account
Debit
Credt
Account
Debit
Credt
4. Buyer pays balance due within the 10 day 2% discount period.
BUYER
SELLER
Account
Debit
Credt
Account
Debit
Credt
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