Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of July, Sheffield's ledger showed Cash $28,000; Accounts Receivable $12,600; Inventory $15,400; Common Shares $25,200; and Retained Earnings $30,800. Sheffield Home has experienced a return rate of 2% of sales and uses a perpetual inventory system. July 11 13 16 17 18 27 30 31 2 Sold merchandise on account to Home Security Ltd. for $12,600, terms n/45, FOB destination. The cost of the merchandise was $8,400. 2 4 5 8 Freight charges of $280 were paid by the appropriate party on the merchandise sold. Purchased merchandise on account from Al Gadgets Inc. for $19,600, terms 2/10. n/30, FOB shipping point. Freight charges of $700 were paid by the appropriate party on the merchandise purchased on July 4. Collected $4,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 9 Paid a $250 cash refund to customers for returned merchandise. The cost of the returned merchandise was $80. It was restored to inventory. Received a $1,120 credit from Al Gadgets when merchandise was returned Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $2,800. Purchased merchandise from Virtual Trainers Inc. for $16,800, terms n/30, FOB destination. Freight of $280 was paid by the appropriate party on the July 16 purchase of merchandise. Paid Al Gadgets in full. Received payment in full from Home Security Ltd. for merchandise sold on account on July 2. Purchased supplies for $1,960 cash. A physical inventory count was taken and determined that there was $39,200 of inventory on hand. Prepare any adjustment required.
Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of July, Sheffield's ledger showed Cash $28,000; Accounts Receivable $12,600; Inventory $15,400; Common Shares $25,200; and Retained Earnings $30,800. Sheffield Home has experienced a return rate of 2% of sales and uses a perpetual inventory system. July 11 13 16 17 18 27 30 31 2 Sold merchandise on account to Home Security Ltd. for $12,600, terms n/45, FOB destination. The cost of the merchandise was $8,400. 2 4 5 8 Freight charges of $280 were paid by the appropriate party on the merchandise sold. Purchased merchandise on account from Al Gadgets Inc. for $19,600, terms 2/10. n/30, FOB shipping point. Freight charges of $700 were paid by the appropriate party on the merchandise purchased on July 4. Collected $4,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 9 Paid a $250 cash refund to customers for returned merchandise. The cost of the returned merchandise was $80. It was restored to inventory. Received a $1,120 credit from Al Gadgets when merchandise was returned Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $2,800. Purchased merchandise from Virtual Trainers Inc. for $16,800, terms n/30, FOB destination. Freight of $280 was paid by the appropriate party on the July 16 purchase of merchandise. Paid Al Gadgets in full. Received payment in full from Home Security Ltd. for merchandise sold on account on July 2. Purchased supplies for $1,960 cash. A physical inventory count was taken and determined that there was $39,200 of inventory on hand. Prepare any adjustment required.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 4MC
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of
July, Sheffield's ledger showed Cash $28,000; Accounts Receivable $12,600; Inventory $15,400; Common Shares $25,200; and
Retained Earnings $30,800. Sheffield Home has experienced a return rate of 2% of sales and uses a perpetual inventory system.
July
11
13
16
17
18
27
30
31
2 Sold merchandise on account to Home Security Ltd. for $12,600, terms n/45, FOB destination. The cost of the
merchandise was $8,400.
2
4
5
8
9
Paid a $250 cash refund to customers for returned merchandise. The cost of the returned merchandise was $80. It
was restored to inventory.
Received a $1,120 credit from Al Gadgets when merchandise was returned.
Sold merchandise to various customers for $9,800 cash. The cost of the merchandise was $2,800.
Purchased merchandise from Virtual Trainers Inc. for $16,800, terms n/30, FOB destination.
Freight of $280 was paid by the appropriate party on the July 16 purchase of merchandise.
Paid Al Gadgets in full.
Received payment in full from Home Security Ltd. for merchandise sold on account on July 2.
Purchased supplies for $1,960 cash.
A physical inventory count was taken and determined that there was $39,200 of inventory on hand. Prepare any
adjustment required.
Date
July 2 V
July 4
Freight charges of $280 were paid by the appropriate party on the merchandise sold.
Purchased merchandise on account from Al Gadgets Inc. for $19,600, terms 2/10. n/30, FOB shipping point.
Freight charges of $700 were paid by the appropriate party on the merchandise purchased on July 4.
Collected $4,200 of the accounts receivable outstanding at the beginning of the month. All accounts were originally
sold on terms of n/30.
Account Titles and Explanation
Accounts Receivable
Sales
(To record sale of goods on account)
Cost of Goods Sold
Debit
12600
8400
Credit
12
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