Select all that apply Merchandise Inventory, before adjustment, has a balance of $5,000. The newly counted inventory balance is $3,500. The jour remove the original balance, will include which of the following entries: credit to merchandise inventory for $5,000 credit to come summary for $5,000 debit to income summary for $5,000 debit to merchandise inventory for $5,000 Need help? Review these concept resources.

Select all that apply Merchandise Inventory, before adjustment, has a balance of $5,000. The newly counted inventory balance is $3,500. The jour remove the original balance, will include which of the following entries: credit to merchandise inventory for $5,000 credit to come summary for $5,000 debit to income summary for $5,000 debit to merchandise inventory for $5,000 Need help? Review these concept resources.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual...

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Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Information relating to inventory for Janie Par Gifts is provided below. Beginning merchandise inventory 120,000 Ending merchandise inventory 90,000 Purchases 250,000 1. Set up a spreadsheet similar to the one provided below. 2. Enter the appropriate information from above into the Trial Balance columns. 3. Prepare appropriate adjustments and extensions to the Adjusted Trial Balance columns.
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
Calculate the gross cost of merchandise sold. Present your answer with a dollar sign, comma separator, and rounded to the dollar (i.e. $19,642). NOTE. In order to get the answer on the key, you have to use the cost value of Physical Inventory NOT the cost value of Closing Book Inventory. Physical inventory is the more correct number, so this is the appropriate approach. NOTE. In order to get the answer on the key, you have to compute the cost percent, rounded to four decimal places (i.e. 53.1234%). This is a short-coming of the key that came with your textbook - and the authors' computation of the answer using Excel instead of a caluclator. NOTE. There are four questions associated with this data. You will ultimately complete a complete RIM exercise. Cost ($) Retail ($) Opening inventory 130,410 201,543 Gross purchases 418,390 884,916 Returns to vendors 1,726 3,514 Cash discounts 2,040 Alteration costs 1,620 Freight 1,690 Gross Sales 806,430…
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Comparing periodic and perpetual inventory systems For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both. Normally used for relatively inexpensive goods. Keeps a running computerized record of merchandise inventory. Achieves better control over merchandise inventory. Requires a physical count of inventory to determine the quantities on hand. Uses bar codes to keep up-to-the-minute records of inventory.
Identify whether each description best applies to a periodic or a perpetual inventory system. Provides more timely information to managers. Choose. + Updates the inventory account only at period-end. Choose. + Requires an adjusting entry to record inventory shrinkage. Choose. Returns immediately affect the account balance of Merchandise Inventory Choose. + Records cost of goods sold each time a sales transaction occurs. Choose. +
Take me to the text a) Fill in the missing numbers in the inventory schedule using the weighted-average cost inventory valuation method. This company uses the perpetual inventory system. Do not enter dollar signs or commas in the input boxes.Round all answers to 2 decimal places. When calculating the unit cost, round to 2 decimal places as well. Inventory Schedule Purchases Sales Balance Transaction Description Quantity Amount Quantity Amount Quantity Amount Opening Balance 0 $ 0 #1 Purchase from AAA Co. 600 $6,600.00 Answer $Answer Answer $Answer #2 Sale to SSS Co. Answer $Answer Answer $Answer 300 $3,300.00 #3 Sale to TTT Co. Answer $Answer 150 $Answer Answer $Answer #4 Purchase from BBB Co. 70 $1,400.00 Answer $Answer Answer $Answer #5 Sale to UUU Co. Answer $Answer 30 $Answer Answer $Answer b) If the FIFO method had been used, what would the value of COGS been for the sale to UUU Co.? COGS = $Answer c) If the specific identification method had…
Take me to the text Use the following information to calculate the estimated closing inventory at cost by using the retail method.. At Cost At Retail Item Cost of Goods Sold Opening Inventory Purchases Cost of Goods Available for Sale Sales at Retail Closing Inventory at Retail $2,700 $50,000 $52,700 Do not enter dollar signs or commas in the input boxes. Round the Cost-to-Retail Ratio to 1 decimal place (ie. 72.3%) Cost-to-Retail Ratio= Round your answer to the nearest whole number. Closing Inventory At Cost = $ Check $5,400 $104,000 $109,400 $53,200 $56,200
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Comparing periodic and perpetual inventory systems For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both. a. Normally used for relatively inexpensive goods. b. Keeps a running computerized record of merchandise inventory. c. Achieves better control over merchandise inventory. d. Requires a physical count of inventory to determine the quantities on hand. e. Uses bar codes to keep up-to-the-minute records of inventory.
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Journalizing purchase transactions—periodic inventory system Consider the following transactions for Garman Packing Supplies: Requirements Journalize the purchase transactions assuming Carman Packing Supplies uses the periodic inventor)'system. Explanations are not required. What is the amount of net purchases?