Pass Journal Entries: Recording Cost of Goods Sold in a Perpetual System: • Daisy's sells a pair of running shoes that costs the company $70 Recording Purchase in a Periodic System: • Assume that Daisy's buys shoes on account from Nike at a cost of $4,000 • Daisy's returns $850 of merchandise to Nike for credit on Daisy's accoun

Pass Journal Entries: Recording Cost of Goods Sold in a Perpetual System: • Daisy's sells a pair of running shoes that costs the company $70 Recording Purchase in a Periodic System: • Assume that Daisy's buys shoes on account from Nike at a cost of $4,000 • Daisy's returns $850 of merchandise to Nike for credit on Daisy's accoun

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1PA: Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15...

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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.
Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a periodic inventory system?
Consider the following transaction: On February 15, Darling Dolls sells 110 dolls with a sales price of $15 per doll to Rosemary Cummings The cost to Darling Dolls is $5 per doll. Prepare a journal entry under each of the following conditions. Assume Gentry charges a 3.5% fee for each sales transaction using its card. A. Payment is made using a credit, in-house account. B. Payment is made using a Gentry credit card.
Dixon Menswear Shop purchased shirts from Colt Company on May 28, 2019, and received an invoice with a list price amount of 5,000 and payment terms of 2/10, n/30. Dixon uses the net method to record purchases. Dixon should record purchases of: a. 4,000 b. 4,900 c. 5,000 d. 5,100
Gordon's Grocers purchases bread from Buddy’s Bread Company at $1.45 per loaf. Gordon's recently engaged in a customer service contract with Buddy's to purchase 20,000 loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of 2/10, n/30. Buddy expects Gordon to pay within the discount period. Required: Question Content Area Prepare the journal entry to record the sale using the net method Hint: In calculating your answer, use one minus the discount rate (eg. 1 - 0.02 = .98)
Purchase-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $25,300, terms n/30. The cost of the merchandise sold is $15,200. Showcase Co. issues a credit memo for $4,300 as a price adjustment prior to Balboa Co. paying the original invoice. a. Journalize Balboa Co.'s entry for the purchase. If an amount box does not require an entry, leave it blank. B8 Merchandise Inventory Accounts Payable-Showcase Co. Feedback b. Journalize Balboa Co.'s entry for the credit memo. If an amount box does not require an entry, leave it blank. 88 Accounts Payable-Showcase Co. Merchandise Inventory Feedback C. Journalize Balboa Co,'s entry for the payment of the invoice. If an amount box does not require an entry, leave it blank. Accounts Payable-Showcase Co. Cash v
Review the following situations and record any necessary journal entries for Mequon’s Boutique May 10 Mequon’s Boutique purchases $2,500 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $120 cash. Terms of the purchase are FOB Shipping Point. May 14 Mequon’s Boutique sells $3,000 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mequon’s of $1,800. Shipping charges are an extra $120 cash. Terms of the sale are FOB Shipping Point. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.
record any necessary journal entries for Mary’s Hat Shop April 10 Mary's Hat Shop purchases $2500 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $120.00 cash. Termsof the purchase are FOB shipping point. April 14 Mary’s Hat Shop sells $3,000 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mary’s of $1,800. Shipping charges are an extra $120 cash. Terms of the sale are FOB Shipping Point. Assume the perpetual inventory system is used.
Review the following situations and record any necessary journal entries for Lumber Farm Feb. 13 Lumber Farm purchases $9,650 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $210 cash. Terms of the purchase are FOB Destination. Feb. 19 Lumber Farm sells $5,670 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Lumber Farm of $2,200. Shipping charges are an extra $230 cash. Terms of the sale are FOB Destination.
Review the following situations and record any necessary journal entries for Letter Depot. Mar. 9 Letter Depot purchases $11,480 worth of merchandise on credit from a manufacturer. Shipping charges are an extra $460 cash. Terms of the purchase are 2/10, n/40, FOB Destination, invoice dated March 9. Mar. 20 Letter Depot sells $7,500 worth of merchandise to a customer who pays on credit. The merchandise has a cost to Letter Depot of $2,850. Shipping charges are an extra $420 cash. Terms of the sale are 3/15, n/50, FOB Destination, invoice dated March 20. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.
Review the following situations and record any necessary journal entries for Mequon’s Boutique. May 10 Mequon’s Boutique purchases $3,000 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $100 cash. Terms of the purchase are FOB Shipping Point. May 14 Mequon’s Boutique sells $3,700 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mequon’s of $1,800. Shipping charges are an extra $150 cash. Terms of the sale are FOB Shipping Point. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. May 10 Purchase - Select - - Select - - Select - - Select - May 10 Shipping charges - Select - - Select - - Select - - Select - May 14 Sale with cash - Select - - Select - - Select - - Select - May 14 Cost of sale - Select - - Select - - Select - - Select -
Purchase-Related Transactions Stylon Co., a women's clothing store, purchased $28,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30 using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $4,200, receiving a credit memo. a. ournalize Stylon’s entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank b. Journalize Stylon’s entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.