ReGLO402 - Based on Problem 4-2A Lowe's Company LO P1, P2Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system. (Hint:It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron.)1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoicedated August 1.5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice datedAugust 5. The merchandise had cost $4,000.8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point,invoice dated August 8.9 Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp.Aug.Aug.Aug.Aug.Aug. 10 Baird returned merchandise from the August 5sale that had cost Lowe's $400 and was sold for $600. Themerchandise was restored to inventory.Aug. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received acredit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased.Aug. 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August 1 purchase, reducing the amount owedto Aron.Aug. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10.18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12.Aug. 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19.The merchandise had cost $2,400.Aug. 22 Tux requested a price reduction onthe August 19 sale because the merchandise did not meet specifications.Lowe's sent Tux a $500 credit memorandum toward the $4,800 invoice to resolve the issue.Aug. 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allowance from August 22.Aug. 30 Paid Aron Company the amount due from the August 1 purchase.O Answer is not complete.Schedule ofPayables ·GeneralGeneralSchedule ofIncomeImpact onRequirementTrial BalanceReceivablesStatementIncomeJournalLedger< Prev4 of 5Next >MacBook Air IncreaseImpact on income(decrease)to incomeAug. 1) Purchased merchandise from Aron Company for$7,500 under credit terms of 1/10, n/30, FOB destination,invoice dated August 1.Aug. 5) Sold merchandise to Baird Corp. for $5,200under credit terms of 2/10, n/60, FOB destination, invoicedated August 5.Aug. 5) The merchandise sold to Baird had cost $4,000.Aug. 8) Purchased merchandise from WatersCorporation for $5,400 under credit terms of 1/10, n/45,FOB shipping point, invoice dated August 8.Aug. 9) Paid $125 cash for shipping charges related tothe August 5 sale to Baird Corp.Aug. 10) Baird returned merchandise from the August 5sale that had sold for $600.Aug. 10) The cost of the merchandise returned byLowe's was $400. The merchandise was restored toinventory.Aug. 12) After negotiations with Waters Corporationconcerning problems with the purchases on August 8,Lowe's received a credit memorandum from Watersgranting a price reduction of $400 off the $5,400 ofgoods purchased.Aug. 14) At Aron's request, Lowe's paid $200 cash forfreight charges on the August 1 purchase, reducing theamount owed to Aron.Aug. 15) Received balance due from Baird Corp. for theAugust 5 sale less the return on August 10.< Prev4 of 5Next >

Impact on Income - Impact on Income is the statement includes all the expenses and income that made…

Increase (decrease) to income Impact on Income Aug. 1) Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5) Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Aug. 5) The merchandise sold to Baird had cost $4,000. Aug. 8) Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9) Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. Aug. 10) Baird returned merchandise from the August 5 sale that had sold for $600. Aug. 10) The cost of the merchandise returned by Lowe's was $400. The merchandise was restored to inventory. Aug. 12) After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased. Aug. 14) At Aron's request, Lowe's paid $200 cash for eight amount owed to Aron. ges on the August 1 purchase, reducing the Aug. 15) Received balance due from Baird Corp. for the August 5 sale less the return on August 10.

Increase (decrease) to income Impact on Income Aug. 1) Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 5) Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Aug. 5) The merchandise sold to Baird had cost $4,000. Aug. 8) Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Aug. 9) Paid $125 cash for shipping charges related to the August 5 sale to Baird Corp. Aug. 10) Baird returned merchandise from the August 5 sale that had sold for $600. Aug. 10) The cost of the merchandise returned by Lowe's was $400. The merchandise was restored to inventory. Aug. 12) After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a credit memorandum from Waters granting a price reduction of $400 off the $5,400 of goods purchased. Aug. 14) At Aron's request, Lowe's paid $200 cash for eight amount owed to Aron. ges on the August 1 purchase, reducing the Aug. 15) Received balance due from Baird Corp. for the August 5 sale less the return on August 10.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ss
Sales tax transactions Journalizing injuries to record the following selected transactions A. Sold 3000 of merchandise on account, subject to a sales tax of 7%. The cost of merchandise is sold was $1,770. For a compound transaction, if an amount box does not require an entry, leave it like ______ ______ ______ ______ ______ ______ B. Paid $49,170 to state sales tax department for taxes collected. _____ _____
Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below (as a %). (Round to nearest tenth.) *Chart is attached with the information*
Show Journal entries 3/1/22 Purchased $10,000 merchandise on account. Terms were 2/10, n/30, FOB Shipping Point. Sales taxes were 6% not included in the price. The shipping cost was $100. 3/3/22 Sold $20,000 merchandise to WG Company. Credit terms were 2/10, n/30, FOB Destination. The cost of goods sold was $8,000. Sales tax was 7% not included in the price. Paid $100 to UPS to ship the merchandise to WG Company 3/6/22 Bought back 500 shares of its own common stock at $14 per share from an unsatisfied stockholder 3/10 Collected from WG Company for the above sales.
Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $120,700 Sales returns and allowances 810 Sales discounts 680 Merchandise inventory, January 1 34,800 Purchases during the period 77,000 Purchases returns and allowances during the period 3,840 Purchases discounts taken during the period 2,310 Freight-in on merchandise purchased during the period 1,390 Merchandise inventory, December 31 31,500 Determine the gross profit.
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $160,000 Sales Returns and Allowances 2,300 Sales Discounts 4,175 Interest Revenue 425 Merchandise Inventory, January 1, 20-- 28,400 Estimated Returns Inventory, January 1, 20-- 600 Purchases 109,000 Purchases Returns and Allowances 4,560 Purchases Discounts 2,670 Freight-In 895 Merchandise Inventory, December 31, 20-- 30,100 Estimated Returns Inventory, December 31, 20-- 900 Wages Expense 27,400 Supplies Expense 800 Phone Expense 800 Utilities Expense 8,000 Insurance Expense 1,200 Depreciation Expense—Equipment 3,900 Miscellaneous Expense 590 Interest Expense 4,700 Sauter Office Supplies Income Statement For Year Ended December 31, 20-- Revenue from sales: $ $…
Calculate the correct gross profit for 20xx
Main.do?invoker=&takeAssignments Record the following transactons as general journal entries. Use the gross-price method. Aug. 6 Purchased $830 of merchandise on account from Johnston Co. Credit terms 2/10, /30. Bought an $18,000 truck from Pillner Co., paylng $3,000 down; balance on account. 13 Purchased $2,611 of merchandise for cash from Pillner and Co. Pald for the August 6 purchase of merchandise from Johnston Co. Purchased $1,743 of merchandise from Luls Co. Credit terms 2/10, n/30. 15 17 If an amount box does not requlre an entry, leave It blank. If required, round answers to the nearest cent. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 1 Aug. 6 1 2 2 3 Aug. 8 4 5 6 Aug. 13 7 8 Aug. 15 8 9 10 10 11 11 Aug. 17 12 12 Check My Work 1more Check My Workuseremanng. All work saveod.
Hh1. calculate net sales, cost of goods sold and gross profit from sales
Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 $ 5 12 Purchase 13 28 Purchase 1 15 Total $33 Assume one unit is sold on October 31 for $28. Determine cost of goods sold, gross profit, and ending inventory under the LIFO method.
6