Larry's Building Supplies (LBS) is a local hardware store. LBS uses aperpetual inventory system. The following transactions (summarized)have been selected for analysis:a Sold merchandise for cash (cost of merchandiseb$224,350)Received merchandise returned by customers asunsatisfactory (but in perfect condition) for a cashrefund (original cost of merchandise $1,900)$ 5,00,000$ 3,000c Sold merchandise (costing $3,000) to a customer onaccount with terms n/30$5,000d Collected half of the balance owed by the customer in(c)$2,500e Granted a partial allowance relating to credit sales thecustomer in (c) had not yet paid$ 950Required:1. Compute Net Sales and Gross Profit for LBS.2. Compute the gross profit percentage.

Detailed explanation:Net Sales: Cash Sales in a.$500,000…

Answered: Larry's Building Supplies (LBS) is a…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...

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Inventory Costing Methods Andersons Department Store has the following data for inventory, purchases, and sales of merchandise for December. Andersons uses a perpetual inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations.) 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes?
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Larry’s Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system.The following transactions (summarized) have been selected for analysis:a. Sold merchandise for cash (cost of merchandise $224,350). $500,000b. Received merchandise returned by customers as unsatisfactory(but in perfect condition) for cash refund (original cost of merchandise $1,900). 3,000c. Sold merchandise (costing $3,000) to a customer on account with terms 2/10, n/30. 5,000d. Collected half of the balance owed by the customer in ( c ) within the discount period. 2,450e. Granted a partial allowance relating to credit sales that the customer in ( c ) hadnot yet paid. 950Required:1. Compute Sales Revenue, Net Sales, and Gross Profit for LBS.2. Compute the gross profit percentage (using the formula shown in this chapter and rounding toone decimal place).3. Prepare journal entries to record transactions ( a )–( e ).4. LBS is considering a contract to sell building supplies to a local home…
Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $200) after year-end from sales made during the year. $ 55,040 310 13,600 6,800 172 320 PA6-3 (Algo) Part 4 4. Ramos Hair Styling is considering a contract to sell merchandise to a hair salon chain for $27,000. This merchandise will cost Rar Hair Styling $17,800. What would be the increase (or decrease) to Ramos Hair Styling…
Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $200) after year-end from sales made during the year. $ 55,040 310 13,600 6,800 172 320 PA6-3 (Algo) Part 1 Required: 1. Compute Net Sales and Gross Profit for Ramos Hair Styling. Net Sales Gross Profit S
Ramos Hair Styling is a wholesaler of hair supplies. Ramos Hair Styling uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $30,957). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $280). c. Sold merchandise (costing $6,460) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. f. Anticipate further returns of merchandise (costing $200) after year-end from sales made during the year. $ 55,040 310 13,600 6,800 172 320 PA6-3 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage %
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. Thefollowing transactions (summarized) have been selected for analysis:a. Sold merchandise for cash (cost of merchandise $28,797). $51,200b. Received merchandise returned by customers as unsatisfactory (but inperfect condition) for cash refund (original cost of merchandise $360). 600c. Sold merchandise (costing $4,750) to a customer on account with terms2/10, n/30. 10,000d. Collected half of the balance owed by the customer in ( c ) within the discount period. 4,900e. Granted a partial allowance relating to credit sales that the customer in ( c ) hadnot yet paid. 160Required:1. Compute Sales Revenue, Net Sales, and Gross Profit for Hair World.2. Compute the gross profit percentage (using the formula shown in this chapter and rounding toone decimal place).3. Prepare journal entries to record transactions ( a )–( e ).4. Hair World is considering a contract to sell merchandise to a hair salon…
Based on the transactions above what would my net sales and gross profit be?
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $26,797). $47,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition), for a cash refund (original cost of merchandise $330). 550 c. Sold merchandise (costing $4,513) to a customer, on account with terms 2/10, n/30. 9,500 d. Collected half of the balance owed by the customer in (c) within the discount period. 4,655 e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid 152 Compute sales revenue, Net sales, and Gross Profit for Hair World.
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