On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase were 4/10, n/30. It paid for 85 tumbling mats on March 25 and paid for the remaining 35 tumbling mats on April 15. If CoCo uses the net method to account for its inventory purchases, what is its cash payment and reduction of inventory on March 25? What is the amount of accounts payable after the March 25 payment? Assume that the perpetual inventory system is used. (For entries with a $0 balance, make sure to enter "0" in the appropriate input cell.) On March 25, CoCo cash payment is On March 25, the reduction of inventory is

On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase were 4/10, n/30. It paid for 85 tumbling mats on March 25 and paid for the remaining 35 tumbling mats on April 15. If CoCo uses the net method to account for its inventory purchases, what is its cash payment and reduction of inventory on March 25? What is the amount of accounts payable after the March 25 payment? Assume that the perpetual inventory system is used. (For entries with a $0 balance, make sure to enter "0" in the appropriate input cell.) On March 25, CoCo cash payment is On March 25, the reduction of inventory is

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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Similar questions

If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
Small Musical Shop uses the perpetual inventory system. On April 2, Small Musical sold merchandise for $50,000 to a customer on account with terms of 2/15, n/30. The allowance and returns on this sale amounted to $2,000 and $8,000, respectively. The inventory return was worth $4,320. The cost of goods sold was $27,000. On April 20, Small Musical received payment from the customer. Calculate the amount of gross profit.
Debby Ventures uses the perpetual inventory system and had the following sales transactions during June: March 2 Sold merchandise to Ricky Store on credit for $7,800, terms 2/15, n/60. The items sold had a cost of $3,900. March 4 Ricky Store returned merchandise that had a selling price of $ 500. The cost of the merchandise returned was $250. March 13 Ricky Store paid for the merchandise sold on June 2 less the return, taking any appropriate discount earned. Prepare the journal entries that Debby Ventures must make to record these transactions
On April 2, Kelvin sold $35000 of inventory items on credit with the terms 2/10, net 30. Payment on $21000 sales was received on April 8 and the remaining payment on $14000 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a: debit to Cash and credit to Accounts Receivable for $13720. debit to Cash and credit to Sales Discounts Forfeited for $700. debit to Accounts Receivable and credit to Sales Revenue for $35000. O debit to Cash for $14000 and credit to Sales Discounts Forfeited for $280.
Mayfair Company completed the following transactions and uses a perpetual inventory system. June 4 Sold $1,100 of merchandise on credit (that had cost $700) to Natara Morris, terms n/15. June 5 Sold $12,000 of merchandise (that had cost $7,200) to customers who used their Zisa cards. Zisa charges a 3% fee. June 6 Sold $8,000 of merchandise (that had cost $4,800) to customers who used their Access cards. Access charges a 28 fee. June 8 Sold $7,000 of merchandise (that had cost $2,900) to customers who used their Access cards. Access charges a 18 fee. June 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $840 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 1 2 3 4 5 6 7 8 9 10 > Sold $1,100 of merchandise on credit to Natara Morris,…
On September 12, Fang Company sold merchandise of $5,800 to Brown Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Fang uses the perpetual inventory system and the net method of accounting for sales. On September 14, Brown returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Brown pays the invoice on September 18 and takes the appropriate discount. The journal entry that Fang makes on September 18 is: Multiple Choice Account Title Debit Credit Cash 5,800 Accounts Receivable 5,800 Account Title Debit Credit Cash 5,194 Accounts Receivable 5,194 Account Title Debit Credit Cash 5,194 Sales Discounts 106 Accounts Receivable 5,300 Account Title Debit Credit Cash 5,684 Accounts Receivable 5,684 Account Title Debit Credit Cash 5,684 Sales Discounts 116 Accounts Receivable…
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms 2/10, n30. The cost of the items sold is $4,500. Klein uses PERPETUAL inventory system and the GROSS METHOD of accounting for sales. Babson pays the invoice on March 17th and takes the appropriate discount. What is the journal entry Klein makes on March 17th?
Use the following transaction to answer the all of the questions. A company purchases inventory on credit for $80.000. Inventory costing $30,000 is sold on credit for $40,000. The applicable HST rate is 13% on sales and purchases. HST are remitted at the end of the month. What does the journal entry look like for the purchase of inventory using the periodic inventory system? Credit Purchases $30,000, Credit HST Payable $3,900, Credit, A/P the rest Debit Purchases $30,000, Debit HST Recoverable $3,900, Credit A/P the total of the 2 debits Credit Purchases $80,000, Credit HST Payable $10,400, Credit, A/P the rest Debit Purchases $80,000, Debit HST Recoverable $10,400, Credit, A/P the total of the 2 debits
Gadubhai
Pink Company has beginning inventory of 24 units at a cost of $12.00 each on May 1. On June 5, it purchases 16 units at $14.00 per unit. On June 12 it purchases 19 units at $17.00 per unit. On June 15, it sells 37 units for $32 each. Using the LIFO perpetual inventory method, what is the value of the inventory on June 15 after the sale?