som Corpuses a perpetual inventory system. The company had the following inventory transactions in Apr Apr 3 1 2 3 7 30 Additional information Purchased merchandise from Grouper Lad for $28.560, terma n/30 FOB ping point The appropriate company paid freight costs of $714 on the merchandise purchased on April 3 Purchased supplies on account for $5,100 Returned merchands to Grouper and received a credit of $3.570 The merchandise was returned to inventory for future real Paid the amount due to Grouperin full The cost of the merchandissold on April 3 was $19.380. Grouper expected a return rate of 15% The cost of the merchandise returned on April wa $2.346 Grouper uses a perpetual inventory system Record the transactions in the books of Grouper at all debit entries before comit entries. Creat account tes are automatically indented when the amount is entered De not indent manually If no entry is required, select "No Entry for the account titles and enter Ofor the amounts Record journal entries in the order presented in the problem) Date < Account Titles and Explanation (To record credit sale) To record cost of merchandise sold To record return of good (Te record cost of merchandise returned Debit Credit

som Corpuses a perpetual inventory system. The company had the following inventory transactions in Apr Apr 3 1 2 3 7 30 Additional information Purchased merchandise from Grouper Lad for $28.560, terma n/30 FOB ping point The appropriate company paid freight costs of $714 on the merchandise purchased on April 3 Purchased supplies on account for $5,100 Returned merchands to Grouper and received a credit of $3.570 The merchandise was returned to inventory for future real Paid the amount due to Grouperin full The cost of the merchandissold on April 3 was $19.380. Grouper expected a return rate of 15% The cost of the merchandise returned on April wa $2.346 Grouper uses a perpetual inventory system Record the transactions in the books of Grouper at all debit entries before comit entries. Creat account tes are automatically indented when the amount is entered De not indent manually If no entry is required, select "No Entry for the account titles and enter Ofor the amounts Record journal entries in the order presented in the problem) Date < Account Titles and Explanation (To record credit sale) To record cost of merchandise sold To record return of good (Te record cost of merchandise returned Debit Credit

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. Both companies use the net method under a perpetual inventory system. Ap 2. Swan Company sold merchandise on account to Bird Company, $54,800, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,620, which was added to the invoice. The cost ef the goods sold was $33,180. 8. Swan Company sold merchandise on account to Bird Company, $48,300, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $25,920. 8. Swan Company paid freight of $1,205 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 24. Swan Company sold merchandise on account to Bird Company, $66,060, terms FOB shipping point, n/eom. The cost of the goods sold was $37,140. 25. Swan…
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Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $567. July 3 Paid $100 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,100 for $2,500 cash. July 9 Purchased merchandise from Leight Company for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $1,000 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. July 12 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Boden Company within the…
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.
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Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. August 1 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Baird Corporation for $4,900 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,000. August 8 Purchased merchandise from Waters Corporation for $6,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $150 cash for shipping charges related to the August 5 sale to Baird Corporation. August 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $500 and was sold for $1,000. The merchandise was restored to inventory. August 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from Waters of…
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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. Both companies use the net method under a perpetual inventory system. Ap 2. Swan Company sold merchandise on account to Bird Company, $54,800, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,620, which was added to the invoice. The cost ef the goods sold was $33,180. 8. Swan Company sold merchandise on account to Bird Company, $48,300, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $25,920. 8. Swan Company paid freight of $1,205 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 24. Swan Company sold merchandise on account to Bird Company, $66,060, terms FOB shipping point, n/eom. The cost of the goods sold was $37,140. 25. Swan…
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