h 6 basd no aboo Starter 5-4 Starter 5-5 Starter 5-6 a. Prepare entries for the following transactions using a perpetual inven- tory system: i. Purchase of inventory during 2017 ii. Sales during 2017 iii. Cost of goods sold during 2017 b. Compute the balance in the Inventory account on December 31, 2017. Suppose Toys Plus uses the perpetual inventory system and buys $100,000 of LEGO toys on credit terms of 2/15, n/45. Some of the goods are dam- aged in shipment, so Toys Plus returns $12,500 of the merchandise to LEGO. How much must Toys Plus pay LEGO: a. After the discount period? b. Within the discount period? Gyur Refer to the Toys Plus situation in Starter 5-4 and journalize the following transactions on the books of Toys Plus. Explanations are not required. a. Purchase of the goods on July 8, 2017. b. Return of the damaged goods on July 12, 2017. c. Payment on July 15, 2017. d. In the end, how much did the inventory cost Toys Plus? Details of purchase invoices, including shipping terms, credit terms, and returns, appear below. Compute the total amount to be paid in full settlement or of each invoice, assuming that credit for returns is granted before the expira- tion of the discount period and payment is made within the discount period. (Hint: Assume FOB destination freight is included in the invoice price.) Returns and Allowances $200 $50 Freight and Credit Terms FOB destination, 3/10, n/45 Invoice a. $2,000 1 $5.500 FOR chinning point, 2/10, n/30 Transportation Charges $ 55 $100 Accounting for the purchase inventory, purchase discount- perpetual b. $85,750 Recording purchase, purchase return, and cash payment transactions-perpetual c. Credit Cash, $85,750 Purchases including shipping terms
h 6 basd no aboo Starter 5-4 Starter 5-5 Starter 5-6 a. Prepare entries for the following transactions using a perpetual inven- tory system: i. Purchase of inventory during 2017 ii. Sales during 2017 iii. Cost of goods sold during 2017 b. Compute the balance in the Inventory account on December 31, 2017. Suppose Toys Plus uses the perpetual inventory system and buys $100,000 of LEGO toys on credit terms of 2/15, n/45. Some of the goods are dam- aged in shipment, so Toys Plus returns $12,500 of the merchandise to LEGO. How much must Toys Plus pay LEGO: a. After the discount period? b. Within the discount period? Gyur Refer to the Toys Plus situation in Starter 5-4 and journalize the following transactions on the books of Toys Plus. Explanations are not required. a. Purchase of the goods on July 8, 2017. b. Return of the damaged goods on July 12, 2017. c. Payment on July 15, 2017. d. In the end, how much did the inventory cost Toys Plus? Details of purchase invoices, including shipping terms, credit terms, and returns, appear below. Compute the total amount to be paid in full settlement or of each invoice, assuming that credit for returns is granted before the expira- tion of the discount period and payment is made within the discount period. (Hint: Assume FOB destination freight is included in the invoice price.) Returns and Allowances $200 $50 Freight and Credit Terms FOB destination, 3/10, n/45 Invoice a. $2,000 1 $5.500 FOR chinning point, 2/10, n/30 Transportation Charges $ 55 $100 Accounting for the purchase inventory, purchase discount- perpetual b. $85,750 Recording purchase, purchase return, and cash payment transactions-perpetual c. Credit Cash, $85,750 Purchases including shipping terms
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Solve S5-5
Transcribed Image Text:h
basd no aboo
Starter 5-4
2005
Starter 5-5
Starter 5-6
000 8
a. Prepare entries for the following transactions using a perpetual inven-
tory system:
i. Purchase of inventory during 2017
ii. Sales during 2017
iii. Cost of goods sold during 2017
b. Compute the balance in the Inventory account on December 31, 2017.
Suppose Toys Plus uses the perpetual inventory system and buys $100,000
of LEGO toys on credit terms of 2/15, n/45. Some of the goods are dam-
aged in shipment, so Toys Plus returns $12,500 of the merchandise to
LEGO. How much must Toys Plus pay LEGO:
a. After the discount period?
b. Within the discount period?
Refer to the Toys Plus situation in Starter 5-4 and journalize the following
transactions on the books of Toys Plus. Explanations are not required.
a. Purchase of the goods on July 8, 2017.
b. Return of the damaged goods on July 12, 2017.
c. Payment on July 15, 2017.
d. In the end, how much did the inventory cost Toys Plus?
Details of purchase invoices, including shipping terms, credit terms, and
returns, appear below. Compute the total amount to be paid in full settlement
of each invoice, assuming that credit for returns is granted before the expira-
tion of the discount period and payment is made within the discount period.
(Hint: Assume FOB destination freight is included in the invoice price.)
Returns and
Allowances
$200
$ 50
000 & Invoice
a. $2,000
b F 00
Freight and Credit Terms
FOB destination, 3/10, n/45
FOR shinning point, 2/10, n/30
Transportation
Charges
$ 55
$100
-1
Accounting for the purchase
inventory, purchase discount-
perpetual
2)
b. $85,750
Recording purchase, purchase
return, and cash payment
transactions-perpetual
2
c. Credit Cash, $85,750
Purchases including shipping
terms
2
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