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

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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: Date Transaction Apr. 2. Swan Company sold merchandise on account to Bird Company, $63,900, terms FOB shipping point, n/15. Swan paid freight of $1,550, which was added to the invoice. The cost of the goods sold was $34,840. 8. Swan Company sold merchandise on account to Bird Company, $44,100, terms FOB destination, n/15. The cost of the goods sold was $28,720. 8. Swan Company paid freight of $1,040 for delivery of merchandise sold to Bird Company on April 8. 17. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $66,550, terms FOB shipping point, n/eom. The cost of the goods sold was $40,840. 25. Swan Company paid Bird Company a cash refund of $2,350 for damaged…
The following merchandise transactions occurred in December. Both cormpanies use a perpetual inventory systerm.Dec.3.Wildhorse Company sold merchandise to Blossom Co. for $40,000, terms 2/10, n/30, FOB destination. This merchandisecost Wildhorse Company $18,000.4The correct company paid freight charges of $800.8Blossom Co. returned unwanted merchandise to Wildhorse. The returned merchandise had a sale price of $2,500 and acost of $990. It was restored to inventory.13Wildhorse Company received the balance due from Blossom Co. Assuming that Blossorm Co. had a balance in Merchandise Inventory on Decerber 1 of $6,000, determine the balance in theMerchandise Inventory account at the end of Decermber for Blossormn Co.
On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Travis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE…
Recording Sales Transactions Jeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Jeet purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225. b. On April 1, Jeet paid freight charges of $250 cash to have the goods delivered to its warehouse. c. On April 8, Jeet returned $800 of the merchandise. The cost of the merchandise returned was $500. d. On April 10, Jeet paid Reece the balance due. Required: Prepare the journal entries to record these transactions on the books of Reece Company. For a compound transaction, if those boxes in which no entry is required, leave the box blank. April 1 (Recorded sale on account) April 1 (Recorded cost of merchandise sold) April 8 (Record return of merchandise) April 8
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
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.
On December 29 of the current year, Sabre Company sold merchandise for $4, 000 on credit terms, 3/10, n/60. Its accounting period ends December 31. Required Provide the following entries under the gross method. a. To record the merchandise sale. Omit the cost of goods sold entry. b. To record collection of the account, assuming collection took place on January 5 of next year. c. To record collection of the account, assuming collection took place on February 15 of next year. Note: If a line in a journal entry isn't required for a transaction, select "N/A" as the account name and leave the Dr. or Cr. answer blank (zero). 0
On December 22, Travis Company purchased merchandise on account from a supplier for $13,200, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Travis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE…
Recording Sales and Shipping Terms Milano Company shipped the following merchandise during the last week of December 2022. All sales were on credit. Sales Price Shipping Terms Date Goods Shipped Date Goods Received $5,460 FOB shipping point December 27 January 3 $3,800 FOB destination December 29 January 5 $4,250 FOB destination December 29 December 31 Required: 1. Compute the total amount of sales revenue recognized by Milano from these transactions. 2. If Milano included all of the above shipments as revenue, what would be the effect on the financial statements? Enter all amounts as positive numbers.
Travis Company purchased merchandise on account from a supplier for $12,300, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, record the journal entries required for the above transactions. If an amount box does not require an entry, leave it blank. a. b.

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