Snap Products uses the perpetual inventory system. The company sells telephone equipment. On Jan 1, 2019, the company's beginning inventory of telephone answering system manufactured by CellTell Company consisted of 28 telephone items at a cost of $400 each: Transactions relating to this product during 2019 follow: Jan 10 Purchased four S-200 telephone systems on account from ÇellTell at a cost of $400 each. Payment due in 30 days. Feb 23 Sold 12 S-200 systems on account to Dell & Carter, stockbrokers at a price of $600 per unit. Payment due in 30 days. Feb 24 Purchased 7 more S-200 systems on account from CellTell. Cost, $400 per machine. Payment due in 30 days. April 9 Paid in cash to ÇellTell for the units purchased on Jan 10. May 20 Sold 11 S-200 systems to Rancho Realty for cash. The selling price was $680 per unit. Nov 22 Collected in cash from Dell & Carter in full settlement of the credit sale on Feb 23. Instructions 1. Prepare journal entries to record these transactions in the accounting records of Snap Products.

Snap Products uses the perpetual inventory system. The company sells telephone equipment. On Jan 1, 2019, the company's beginning inventory of telephone answering system manufactured by CellTell Company consisted of 28 telephone items at a cost of $400 each: Transactions relating to this product during 2019 follow: Jan 10 Purchased four S-200 telephone systems on account from ÇellTell at a cost of $400 each. Payment due in 30 days. Feb 23 Sold 12 S-200 systems on account to Dell & Carter, stockbrokers at a price of $600 per unit. Payment due in 30 days. Feb 24 Purchased 7 more S-200 systems on account from CellTell. Cost, $400 per machine. Payment due in 30 days. April 9 Paid in cash to ÇellTell for the units purchased on Jan 10. May 20 Sold 11 S-200 systems to Rancho Realty for cash. The selling price was $680 per unit. Nov 22 Collected in cash from Dell & Carter in full settlement of the credit sale on Feb 23. Instructions 1. Prepare journal entries to record these transactions in the accounting records of Snap Products.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Snap Products uses the perpetual inventory system. The company sells telephone equipment.
On Jan 1, 2019, the company's beginning inventory of telephone answering system
manufactured by CellTell Company consisted of 28 telephone items at a cost of $400 each:
Transactions relating to this product during 2019 follow:
Jan 10 Purchased four S-200 telephone systems on account from ÇellTell at a cost of $400
each. Payment due in 30 days.
Feb 23 Sold 12 S-200 systems on account to Dell & Carter, stockbrokers at a price of $600
per unit. Payment due in 30 days.
Feb 24 Purchased 7 more S-200 systems on account from CellTell Cost, $400 per machine.
Payment due in 30 days.
April 9 Paid in cash to CellTell for the units purchased on Jan 10.
May 20 Sold 11 S-200 systems to Rancho Realty for cash. The selling price was $680 per
unit.
Nov 22 Collected in cash from Dell & Carter in full settlement of the credit sale on Feb 23.
Instructions
1. Prepare journal entries to record these transactions in the accounting records of Snap
Products.

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