Newell Company used a perpetual inventory system and completed the following transactions in October: Credit Sales Date Oct. 3 Oct. 11 Oct. 21 Oct. 23 Oct. 27 Amount $ 1,600 1,850 8,400 5,300 7,000 Terms 2/10, n/30 3/10, n/30 n/10 EOM 2/10, n/30 1/10 EOM Sales Returns Date Oct. 14 Oct. 23 Oct. 27 Oct. 29 Amount $ 600 500 250 1,500 Instructions Indicate the cash received for each collection. Show your calculations. Date of Collection Oct. 8 Oct. 16 Oct. 31 Nov. 2 Nov. 9

Newell Company used a perpetual inventory system and completed the following transactions in October: Credit Sales Date Oct. 3 Oct. 11 Oct. 21 Oct. 23 Oct. 27 Amount $ 1,600 1,850 8,400 5,300 7,000 Terms 2/10, n/30 3/10, n/30 n/10 EOM 2/10, n/30 1/10 EOM Sales Returns Date Oct. 14 Oct. 23 Oct. 27 Oct. 29 Amount $ 600 500 250 1,500 Instructions Indicate the cash received for each collection. Show your calculations. Date of Collection Oct. 8 Oct. 16 Oct. 31 Nov. 2 Nov. 9

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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Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 20Y3 Cost of merchandise sold $992,800 $611,010 Inventories: Beginning of year 239,440 167,900 End of year 344,560 239,440 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.
The following units of a particular item were availlable for sale during the calendar year: Jan. 1 Inventory 4,100 units at $39 Apr. 19 Sale 2,300 units June 30 Purchase 4,500 units at $43 Sept. 2 Sale 5,200 units Nav. 15 Purchase 2,100 units at $46 The firm maintains a perpetual inventory system. Determine the cost of goods ssold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the illustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method Cost of Goods Sold Inventory Purchases Quantity Total Cos Quantity Unit Cost Total Cost Unit Cost Unit Cost Total Cost Quantity Date Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Balances
Journalize the following transactions for Allen Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction. September 5 September 11 September 15 Date Sold goods costing $3,720 to Walker Company on account, $6,200, terms 4/10, n/30. Walker Company was granted an allowance of $1,550 for returned merchandise that was previously purchased on account. The returned goods are in perfect condition. Received the amount due from Walker Company. Account Title Debit Credit
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