Marshall Supplies is a janitorial supply store that uses perpetual inventory. Journalize the following transactions:July 4 Marshall purchases inventory for sale from Tidy Wholesalers for $8,500 with terms 1/10, n/30.5 Marshall pays Express Transfer $45 for freight on the July 4 order.7 Marshall buys an additional $11,985 in inventory from Tidy Wholesalers with terms 1/10, n/30.13 Marshall pays Tidy Wholesalers the balance due on both invoices.If required, round your answers to two decimal places.July 413

Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Answered: Marshall Supplies is a janitorial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize the following transactions for the company: June 1 Sold merchandise for $6,250 with terms 2/10, n/30. Inventory cost was $5,000. 5 Sold merchandise for $10,000 with terms 3/10, n/30. Inventory cost was $6,000. 11 Received a check from the customer paying the balance due within the discount period.
Mayfair Company completed the following transactions and uses a perpetual Inventory system. June 4 Sold $2,700 of merchandise on credit (that had cost $1,600) to Natara Morris, terms n/15. June 5 Sold $30,000 of merchandise (that had cost $18,000) to customers who used their Zisa cards. Zisa charges a 14 fee. June 6 Sold $21,000 of merchandise (that had cost $12,600) to customers who used their Access cards. Access charges a 3% fee. June 8 Sold $18,000 of merchandise (that had cost $2,900) to customers who used their Access cards. Access charges a 2 fee. June 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $2,160 balance in McKee's account was from a credit sale last year. June 18 Received Morris's check in full payment for the June 4 purchase. Required: Prepare journal entries to record the preceding transactions and events. View transaction list Journal entry worksheet Sold $2,700 of merchandise on credit to Natara Morris, terms n/15. Note:…
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John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 3 4 5 Record the merchandise purchased on account for $5,500. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Record entry Clear entry View general journal 1b Record the payment of freight charges for $55o. 2. Record the return of merchandise purchased on account costing $850. 3a. Record the sale of merchandise for…
The following transactions took place at Funky Fashions during July 20X1. Funky Fashions uses a perpetual inventory system. DATE TRANSACTIONS July 1, 20X1 Purchased dresses for $5,200 plus a freight charge of $250 from Fabulous Fashions, Invoice 101, dated July 1; the terms are 2/10, n/30. July 5, 20X1 Sold two dresses on account to Jeannie Liu, terms 1/10, n/30; issued Sales Slip 788 for $720. The cost of the dresses sold was $504. July 7, 20X1 Received Credit Memorandum 210 for $700 from Fabulous Fashions for damaged dresses returned; the goods were purchased on Invoice 101, dated July 1. July 9, 20X1 Accepted a return of a dress from Jeannie Liu; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $340. The cost of the returned dress was $238. July 10, 20X1 Issued Check 1255 to pay the amount due to Fabulous Fashions for Invoice 101, dated July 1, less the return of July 7 and less the cash discount. July 15, 20X1 Received…
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 28 units for $45 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 18 units @ $18.00 cost 32 units @ $27.00 cost 28 units @ $32.00 cost Required: Monson sells 28 units for $45 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned t December 31 ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units Cost of Goods # of Cost per Cost per Cost of Goods unit Cost per # of units Inventory Balance Date Available for units unit Sold unit Sale sold December 7 December 14 December 15 December 21 Totals
Concord Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Concord Inc. for the month of January. Date Description Quantity Unit Cost orSelling Price Dec. 31 Beginning inventory 160 $21 Jan. 2 Purchase 100 22 Jan. 6 Sale 180 40 Jan. 9 Sale return 10 40 Jan. 9 Purchase 75 24 Jan. 10 Purchase return 15 24 Jan. 10 Sale 50 45 Jan. 23 Purchase 100 26 Jan. 30 Sale 120 51
On March 10, the Stone Company sold merchandise listing for $3,000 to the Dillard Company, terms 1/10, n/30. On March 14, $200 worth of merchandise was returned because it was the wrong size. On March 20, Stone Company received a check for the amount due. Required Record the journal entries made by Stone Company for these transactions Stone uses the periodic inventory system General Journal Description Date Mar 10 Accounts Receivable Cath Sold merchandises Dund Company terms 1/16/30 14 Merchande returned by Dars Company 20 Cash Remittance received from Dard Company # 1 Debit 1.000 00 Credit 1.000 0 O 0
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each. Purchases on December 7 10 units @ $ 6.00 cost Purchases on December 14 20 units @ $12.00 cost Purchases on December 21 15 units @ $14.00 cost Required:Monson sells 15 units for $20 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO
Sant Summa is a retailer that purchases merchandise inventory from Lee Co. Sant Summa record inventory purchases using the gross method and the perpetual inventory system. Sant Summa started the month of July with $2,000 in inventory. Required: Record the journal entries for the following transactions Calculate Sant Summa's Cost of Goods Available for Sale based on the above information. Calculate Sant Summa's Ending Inventory based on the above information. 2-Jul Purchased $5,200 of merchandise inventory from Lee Co. with credit terms 2/15, n60 and FOB shipping point. (Inventory cost Lee $4,000) 3-Jul Paid $350 for shipping charges for the May 2 purchase. 4-Jul Sant Summa returned $200 of damaged merchandise inventory to Lee Co. (inventory cost to Lee of $170) 13-Jul Paid the appropriate amount for the Lee Co. purchases of July 2, taking all discounts. (Lee…
Sandhill Wholesalers uses a perpetual inventory system.March. 1. Stellar Stores purchases $8,900 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB shipping point.2. The correct company pays $150 for the shipping charges.3. Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Sandhill gives Stellar a $1,000 credit on its account.21.Stellar Stores purchases an additional $12,500 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB destination.22.The correct company pays $195 for freight charges.23.Stellar returns $450 of the merchandise purchased on March 21 because it was damaged. Sandhill gives Stellar a $450 credit on its account.30.Stellar paid Sandhill the amount owing for the merchandise purchased on March 1.31.Stellar paid Sandhill the amount owing for the merchandise purchased on March 21. Additional information: March.1. Sandhill's cost of the merchandise sold to Stellar was $4,100.3.…
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,600, on account, terms n/30 FOB shipping point. 9 Paid freight of $50 on calculators purchased from Dragoo Co. 10 Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications. 12 Sold calculators costing $520 for $690 to Fryer Book Store, on account, terms n/30. 14 20 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34. Sold calculators costing $570 for $760 to Heasley Card Shop, on account, terms n/30. Journalize the September transactions for Office Depot. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O…

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