Problem #5Renz Aguhob Fireworks engaged in the following purchase transactions during themonth. The entity observes the policy that all returns are made one day after the goodsare received, and that all purchases are paid within the discount period.List PriceFOB TermsTradeFreightCharges Returns andPurchaseCredit TermsDiscountAllowancesP 4,000P 21,000P 224,000 Shipping Pt.. 126,000 Destination90,000 Shipping Pt.41,000 Shipping Pt.357,000 Destination2/10, n/301/10, n/302/10, n/30n/303/10, п/3030%9,00020%2,0001,00014,0007,00025%9,00024,00020%Required:Using the table above, calculate the amount needed to settle each purchase.

(A) (B) (C) (D) = (A)*(C) (E) = (A)-(D) (F) (G) = (E)*(F) (H) (I) = (G)*(H) (J) = (G)*(I) (K)…

Answered: Renz Aguhob Fireworks engaged in the…

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

Prepare Journal Entries Using Periodic Method and Gross Method
Bookmoto Marketing has the following transactions for the month of March, 200x: Mar 2 - Purchases on account, P800,000; terms: 5; 2/20; n/30. FOB shipping point, freight prepaid, P5,000. Mar 15 - Returned merchandise from Mar 2 purchases amounting to P20,000 Mar 20 - Paid purchases made on March 2 Mar 31 - Purchased goods on account P180,000. FOB destination, freight prepaid P14,000 Required: Journalize the above transactions using PERIODIC МЕТНOD
12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April:April 12 - Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point.April 13 - Received a billing from Orange Freight Lines for $300 for the April 12 purchase.April 15 - Returned $1,000 of merchandise from the April 12 purchase.April 20 - Paid balances due from April 12 purchase.Required:Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journalize the following transactions for Jackson 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. Sold goods costing $5,400 to Lewis Company on account, $9,000, terms 5/10, n/30. March 2 March 8 Lewis Company was granted an allowance of $540 for returned merchandise that was previously purchased on account. The returned goods are in perfect condition. March 13 Received the amount due from Lewis Company. Date Account Title Debit Credit
Record Baker’s November transactions, including the cost of goods sold entries for each sale. Calculate the net realizable value of accounts receivable as of November 30.
Please answer the question correctly. Thank you.
Prepare Journal Entries using Perpetual Method and Net Method
Tariq Fisher Company uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of Rs 450,000. Tariq engaged in the following transactions during the year:Prepare all necessary transaction as General Entries and answer given below option. Purchased merchandise inventory for Rs 500,000. Generated net sales of Rs 600,000. Recorded inventory shrinkage of Rs 10,000 after taking a physical inventory at year-end. Reported gross profit for the year of Rs 180,000 in its income statement. At what amount was Cost of Goods Sold reported in the company’s year-end income statement? At what amount was Merchandise Inventory reported in the company’s year-end balance sheet? Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account? d- Calculate the Gross profit margin ratio
On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer. The entity allowed trade discounts of 15%, and 10%. Credit terms were 3/10, n/30 and the sale was made FOB destination. AAA Company paid 100,000 of the delivery cost. a. Compute the total amount of purchases to be included on the buyer’s inventory in the determination of cost of goods available for sale if payment was made beyond the discount period. b. What is the full amount received by AAA company if payment was made on June 11, 2023?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS