Obj. 2PR 5-2A Sales-related transactions using perpetual inventory systemThe following selected transactions were completed by Amsterdam Supply Co., which sells officesupplies primarily to other businesses and occasionally to retail customers:Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of thegoods sold was $13,300.3.Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was$7,000.4.Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of thegoods sold was $33,200.5.Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of thegoods sold was $19,400.12. Received check for amount due from Equinox Co. for sale on March 2. Chapter 5 Accounting forMar. 14.Sold merchandise to customers who used American Express cards, $13,700. The cost of the goods sold was$8,350.16.Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of thegoods sold was $16,000.18.Issued credit memo to Targhee Co. for merchandise with an invoice amount of $4,800 returned from sale onMarch 16. The cost of the merchandise returned was $2,900.19.Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to theinvoice for prepaid freight. The cost of the goods sold was $5,000.26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.28. Received check for amount due from Vista Co. for sale of March 19.31. Received check for amount due from Empire Co. for sale of March 4.31.Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under ship-ping terms of FOB destination.pr. 3. Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.15. Paid $6,544 to state sales tax division for taxes owed on sales.

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Description: Obj. 2PR 5-2A Sales-related transactions using perpetual inventory systemThe following selected transactions were completed by Amsterdam Supply Co., which sells officesupplies primarily to other businesses and occasionally to retail customers:Mar. 2

Journal entries refers to the the concept of stating the day to day activities of a business in the…

Business

Accounting

merchandise on account to Equinox Co., $18,900, terms F- ds sold was $13,300. merchandise for $11,350 plus 6% sales tax to retail cash c 00. merchandise on account to Empire Co., $55,400, terms FC s sold was $33,200. merchandise for $30,000 plus 6% sales tax to retail custor s sold was $19,400. ved check for amount due from Equinox Co. for sale on M

merchandise on account to Equinox Co., $18,900, terms F- ds sold was $13,300. merchandise for $11,350 plus 6% sales tax to retail cash c 00. merchandise on account to Empire Co., $55,400, terms FC s sold was $33,200. merchandise for $30,000 plus 6% sales tax to retail custor s sold was $19,400. ved check for amount due from Equinox Co. for sale on M

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.2P: Sales-related transactions The- following selected transactions were completed by Affordable...

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Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, 1,815.24. The cost of merchandise was 1,320. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, 622. The cost of the merchandise was 485. c. Bought merchandise on account from Michals Inc., invoice no. 1685, 850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, 65.00 (total 915). d. Received credit memorandum no. 219 from Michals Inc. for merchandise returned, 210.
( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY SYSTEM Sunita Computer Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. May 1 Purchased merchandise on account from Anju Enterprises, 200,000. 8 Purchased merchandise for cash, 100,000. 15 Sold merchandise on account to Salils Pharmacy for 8,000. The merchandise cost 5,000.
Sales-related transactions The- following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000. terms FOB shipping point, n/com. The cost of merchandise sold was $8,400. 8. Sold merchandise on account. $20,000. terms FOB destination. 1/10. n/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19-500. terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. 31. Received cheek for amount due for sale of January 6. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Affordable Supplies Co. Identify each transaction by date.
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.
( Appendix 6B) Inventory Costing Methods: Periodic System Harrington Company had the following data for inventory during a recent year: Assume that Harrington uses a periodic inventory accounting system. Required: 1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Which method will produce the most realistic amount for income? For inventory? 3. CONCEPTUAL CONNECTION Which method will produce the lowest amount paid for taxes?
( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for Tyler Company in Brief Exercise 6-35 and assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest whole dollar.)
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
( Appendix 6B) Inventory Costing Methods: Periodic Inventory System The inventory accounting records for Lee Enterprises contained the following data: Required: 1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
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?