Home Office Books P 360,000 119,880 Branch Books Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 468,000 173,520 65,520 58,500 648,000

Q: 5. Presented below are items taken from the unadjusted trial balance of the Company and its branch…

A: Head or home office sends goods to the branches and treats the goods as investment. It is just like…

Q: JBL undertook the following transactions for the month of Nov Purchased merchandise or $80,000 less…

A: Net purchase = purchase x (1- trade discount rate) x (1- trade discount rate)  = 80000*(1-0.95)…

Q: January 1, 2021 December 31, 2021 Physical inventory, at cost Net sales Cost of goods sold Accounts…

A: Net Sales: Net sales is the amount after deducting returns, allowances, and discounts  from  gross…

Q: On June 10, Splish Brothers Company purchased $6,700 of merchandise from Sunland Company, on…

A: Perpetual Inventory System -An electronic record-keeping system for continuous inventory review in…

Q: Control Accounts provide J-Quan Ltd with useful information on sales and purchases. At the end of…

A: Sales ledger control account…

Q: HAKDOG Company suspects that there is missing inventory in its warehouse at December 31, 2021. All…

A: Net purchases are determined by deducting the purchase allowances, discount and returns from gross…

Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…

A: calculation of correct amount of inventory as on December 31, 2019 are as follows

Q: Upsilon Inc. began operations in the fourth quarter of 2019. For the first quarter ended March 31,…

A: Cost of Merchandise inventory on January 1, 2020 = Selling price of Merchandise inventory on January…

Q: Home Office Branch Dr. (Cr.) P (3,200,000) Dr. (Cr.) Sales Shipments to branch Shipments from home…

A: Branch accounting refers to a system where separate accounts are maintained for each branch.

Q: TB MC Qu. 04-134 (Algo) On September... On September 12, Vandelay Company sold merchandise in the…

A: First, let's understand the terms. The credit terms of 3/10, n/30 mean that Jepson Company can take…

Q: 3. The following information came from the books and records of ABC Corporation and its branch. The…

A: The question is related to net income and net income is calculated from sales-cost of goods sold…

Q: Assuming Met Gala Clothing Company paid MQA, Inc. on August 9 and not on August 15, the Net…

A: Net purchases for the month means cost of goods which are purchased in the particular. Any returns…

Q: Darlington Company entered into the following business events during its first month of operations.…

A: The question is based on the concept of Financial Accounting.

Q: On September 14, 2022, Blossom Company sells merchandise valued at $20000 on account to Pacifica…

A: Blossom’s entry on that date is: Account titles and explanation Debit Credit Cash $19400…

Q: What amount should be reported as inventory on December 31, 2021? Fundador Company reported that…

A:

Q: On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30.…

A: Periodic inventory system is one of the inventory systems in which all transactions related to…

Q: Use the following information for items 9-11: Main Corporation has operated a branch in Cavite for…

A: Cavite branch is an Independent branch since the carries its own accounts receivable, makes its own…

Q: On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30.…

A: The journal entries are prepared to record day to day transactions of the business.

Q: Goods costing $20,000 are purchased on account on April 1, 2021, with credit terms 2/10 n/30. On…

A: Given that, $20,000 are purchased on account on April 1, 2021 credit terms 2/10 n/30  On April 3, a…

Q: Assume that Concord Corporation received the balance due from Sarasota Co. on January 2 of the…

A: Journal entries :  Day to day transactions are recorded in a chronological order is known as journal…

Q: the Company and its branch on December 31, 2021. It is the company's policy to bill all branches for…

A: Merchandise inventory, which is frequently shortened to "inventory," is the phrase used to describe…

Q: A business A uses periodic inventory system. On Nov 15, 2021, the business A sold merchandise to…

A: Solution: It is assumed that company is using gross method of accounting for purchase and sales.

Q: How much cash is required to eliminate the current balance in accounts payable?

A: The answer for the question how much cash is required to eliminate the current balance in accounts…

Q: 5. On December 31, 2020, XYZ's fiscal year end, a physical count of inventory revealed an inventory…

A: Inventory is one of the important current asset being used by the business. For purchases and sales…

Q: Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade…

A: Under a periodic inventory system cost of goods sold will be calculated at the end of the period…

Q: On June 10, Sheffield Corp. purchased $8,700 of merchandise on account from Concord Company, FOB…

A: Journal entry records the accounting transactions of a business in a journal book. All the business…

Q: The following records were taken from the books of the Company and its branch on December 31, 2021:…

A: The FIFO approach, commonly known as First-In, First-Out, is an inventory valuation and cost flow…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.