Blossom Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 atà cost of $1,077,300. At December 31, 2025, the raw materials to be purchased have a market value of $1,027,500. In 2026, Blossompaid $1,077,300 to obtain the raw materials which were worth $1,027.500.Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (List all debit entries before creditentries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "Noentry for the account titles and enter O for the amounts.)

Name: Blossom Company signed a long-term noncancelable purchase commitment
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Blossom Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 atà cost of $1,077,300. At December 31, 2025, the raw materials to be purchased have a market value of $1,027,500. In 2026,

Journal entries are entered into the books of account by using the principle of double-entry…

Business

Accounting

Prepare the entry to record the purchase assuming the company uses a periodic inventory system (List all debit entries before credit entries. 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 for the amounts)

Prepare the entry to record the purchase assuming the company uses a periodic inventory system (List all debit entries before credit entries. 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 for the amounts)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

OnOctober10,201X,CarrolCo. issued debit memorandum no. 1 for $440 to RogerCo. for merchandise returned from invoice no. 312. The merchandise was purchased on account. Your task is to journalize, record, and post this transaction as appropriate. Use the perpetual inventory system. Journalize the transaction. (Record debits first, then credits. Exclude explanations from journal entries. Ignore posting references for purposes of this problem.) Journal Entry Date Accounts PR Dr. Cr. Oct. 10 Record the transaction to the subsidiary ledger account and post to the general ledger accounts. (Select the appropriate account names for each ledger. Ignore posting references for purposes of this problem.) Accounts Payable Subsidiary Ledger General Ledger
Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes: Multiple Choice a debit to Purchases and a credit to Accounts Receivable. a debit to Purchases and a credit to Accounts Payable. a debit to Accounts Payable and a credit to Purchases. a credit to Purchases and a credit to Accounts Payable.
When the merchandise inventory account provides a running balance of the goods on hand, which inventory system is being used? a.Perpetual inventory system b.Periodic inventory system c.Either the periodic or the perpetual inventory system, since both keep a running balance in the merchandise inventory account d.Neither the periodic nor the perpetual inventory system, since both systems do not keep a running balance in the merchandise inventory account
Under the perpetual system of inventory, the Inventory account is debited at each purchase and credited at each sale. Why is it recommended that a business still do an inventory count once in a while?
Please do not give solution in image format ?
Please read and answer jorunal enrrty question using table provided
Please give correct journal entries with details explanation .
Prepare the journal entries to record the following transactions on Wildhorse Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On March 2, Windsor Company sold $947,600 of merchandise to Wildhorse Company on account, terms 3/10, n/30. The cost of the merchandise sold was $534,200. (b) On March 6, Wildhorse Company returned $105,700 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,600. (c) On March 12, Windsor Company received the balance due from Wildhorse Company. No. Date Account Titles and Explanation Debit Credit (a) choose a transaction date March 2March 6March 12 enter an account title…
The internal control questionnaire for purchases and accounts payable includes the following questions. Next to each of the questions, indicate the letter of the related transaction assertion.A. OccurrenceB. CompletenessC. AccuracyD. ClassificationE. Cutoff_______ 1. Are vendor's monthly statements reconciled with individual accounts payable accounts?_______ 2. Are all purchases made only on the basis of approved purchase requisitions?_______ 3. Are vendors' invoices listed immediately upon receipt?_______ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?_______ 5. Is the accounts payable customer ledger balanced periodically with the general ledger control account?_______ 6. Does the accounting manual give instructions to date purchase entries on the date of receipt of goods?_______ 7. Are shipping documents authorized and prepared for goods returned to vendors?_______ 8. Is the accounts payable department notified of goods…
don't give answer in image format
Sheridan Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) (b) (c) No. Prepare all necessary journal entries for Sheridan. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) (a) (1) (a) (2) (b) On July 1, (1) Sheridan purchased $69,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Sheridan paid freight costs of $1,095. O On July 3, Sheridan returned damaged goods and received credit of $6,900. On July 10, Sheridan paid for the goods. Date July 1 July 1 July 3 July 10 V Account Titles and Explanation Inventory Accounts Payable Freight-In Cash Accounts Payable Inventory Accounts Payable Inventory Debit 69000 1095 6900 Credit 69 1 6
When inventory is purchased on credit with terms FOB shipping point, what does the buyer do? Responses The buyer receives a discount if payment is made before the goods leave the seller’s place of business. The seller bears the insurance expense of goods during transit. The buyer reports the liability when the goods reach the buyer’s place of business. The buyer reports the liability when the goods leave the seller’s place of business.