Question 14 Reykjavik Company uses a perpetual inventory system and records their purchases at net amounts. November 1-Purchased merchandise from Selfoss Company for $800 with the terms of 2/10, n/30. November 2-Returned $200 of the merchandise to the Selfoss Company. November 4-Purchased merchandise from the Vik Company for $900 with the terms of 3/10, n/30. November 6-Paid the amount owed to the Selfoss Company November 8-Returned $100 of merchandise purchased from Vik Company. November 12-Sold all of the merchandise on hand from the Selfoss Company for $1,060. November 16-Paid the amount owed to Vik Company in full Required: Prepare the journal entries required for the above events. Date Account Title Debit Credit

Question 14 Reykjavik Company uses a perpetual inventory system and records their purchases at net amounts. November 1-Purchased merchandise from Selfoss Company for $800 with the terms of 2/10, n/30. November 2-Returned $200 of the merchandise to the Selfoss Company. November 4-Purchased merchandise from the Vik Company for $900 with the terms of 3/10, n/30. November 6-Paid the amount owed to the Selfoss Company November 8-Returned $100 of merchandise purchased from Vik Company. November 12-Sold all of the merchandise on hand from the Selfoss Company for $1,060. November 16-Paid the amount owed to Vik Company in full Required: Prepare the journal entries required for the above events. Date Account Title Debit Credit

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Description: Question 14Reykjavik Company uses a perpetual inventory system and records their purchases at net amounts.November 1-Purchased merchandise from Selfoss Company for $800 with the terms of 2/10, n/30.November 2-Returned $200 of the merchandise to the

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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Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $14,850 with terms 2/10, n/30. The cost of the merchandise sold was $8,910. Sale Cost b. Received payment less the discount. C. Issued a credit memo for returned merchandise that was sold for $10,700 terms n/30. The cost of the merchandise returned was $6,420. Refund Inventory
Date January 1 April 7 July 16 October 6 Transaction Beginning inventory Purchase Purchase Purchase Req 1a and b Number of Units 52 132 202 112 498 For the entire year, the company sells 432 units of inventory for $62 each. Required: 1-a & b. Using FIFO, calculate ending inventory and cost of goods sold. 1-c & d. Using FIFO, calculate sales revenue and gross profit. 2-a & b. Using LIFO, calculate ending inventory and cost of goods sold. 2-c & d. Using LIFO, calculate sales revenue and gross profit. 3-a & b. Using weighted-average cost, calculate ending inventory and cost of goods sold. 3-c & d. Using weighted-average cost, calculate sales revenue and gross profit. 4. Determine which method will result in higher profitability when inventory costs are rising. Req 2a and b Req 1c and d Unit Cost Complete this question by entering your answers in the tabs below. $44 46 49 50 Req 3a and b Req 2c and d Using FIFO, calculate ending inventory and cost of goods sold. Cost of Goods Available for…
July 1 Purchased merchandise from Zhang Company for $7,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Knight Company for $1,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $960. July 3 Paid $405 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,900 for $3,100 cash. July 9 Purchased merchandise from Taylor Company for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July July 11 Returned $600 of merchandise purchased on July 9 from Taylor Company and debited its account payable for that amount. July 12 Received the balance due from Knight Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Zhang Company within the discount period. July 19 Sold merchandise that cost $1,800 to Wright Company for $2,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated…
Transactions Aug. 1 Aug. 3 Aug. 12 Beginning merchandise inventory, 17 books $21 each Sold 5 books @ $25 each Purchased 12 books @ $23 each Aug. 15 Sold 15 books @ $25 each Aug. 20 Purchased 3 books @ $26 each Aug. 28 Sold 8 books @ $26 each Print Done Х ... b. Determine the cost of goods sold and ending merchandise inventory by preparing a perpetual inventory record using the FIFO inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.) Purchases Cost of Goods Sold Inventory on Hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Aug. 1 3 12 15 20 20 Totals 28 Requirements a.…
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Sales and Purchasing Transactions A. Prepare two sets of journal entries using the periodic inventory method and perpetual inventory system. Purchased merchandise for P6,000 on credit 4 Sold merchandise that cost 800 for P1,000 on credit 9 Paid for merchandise purchased on June 1 11 Received payment from the customer of June 4 15 Sold merchandise that costs 1200 for P2,000 on credit 24 Purchased merchandise for P3,500 on credit. June 1
Part 1: The following merchandise transactions occurred during the month of March for Jeffries Inc. which uses a perpetual inventory system. Jeffries Inc. records discounts using the gross method. a. March,3: Jeffries Inc. sold merchandise on account to Garrabrant LLC for $48,000 on terms 4/15, n/30. b. March 6: Jeffries Inc. sold merchandise on account to Thompson Inc. for $22,500 on terms 3/15, n/45. c. Márch 6: Jeffries Inc. estimates allowances of $2,160 will be honored on the sales to Thompson Inc. and records these estimates at point of sale. d. March 15: Garrabrant LLC paid Jeffries Inc. for the amount owed. e. March 30: Thompson Inc. paid Jeffries Inc. for the amount owed. Required: Prepare the journal entries using the gross method. Round all values to the nearest dollar. (a): Prepare the journal entry for Jeffries Inc. on March 3.
Journalize the following inventory merchandise transactions for both Sampson and Batson, assuming that the both Sampson and Batson uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45. The cost of the merchandise sold is $25,650. 6 Batson Co. paid the invoice within the discount period.
Sales and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company. Both companies use the net method under a perpetual inventory system. Ap 2. Swan Company sold merchandise on account to Bird Company, $54,800, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,620, which was added to the invoice. The cost ef the goods sold was $33,180. 8. Swan Company sold merchandise on account to Bird Company, $48,300, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $25,920. 8. Swan Company paid freight of $1,205 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 24. Swan Company sold merchandise on account to Bird Company, $66,060, terms FOB shipping point, n/eom. The cost of the goods sold was $37,140. 25. Swan…
9/ On April 208, Jack traders purchased RO 25,500 of merchandise and paid cash .What is the journal entry to record this in the books of buyer under the perpetual inventory system? a. Cash RO 25,500 Dr / Merchandise inventory RO 25,500 Cr b. Account payable RO 25,500 Dr / Merchandise inventory RO 25,500 Cr c. Account payable RO 25,500 Dr / Cash 25,500 Cr d. Merchandise inventory RO 25,500 Dr / Cash RO 25,500 Cr
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