not use ai please don't djdjdjdkdifufycyf7f7f Spooky Corporation is a distributor of Halloween chocolates that runs a periodic inventory system. Inventory has beenpriced to realize a gross margin on all items of 40%. On October 15th, 2024 a fire destroyed ALL of Spooky's inventory.Unfortunately, Spooky has NO insurance coverage.e 3:5 > Just prior to the fire, the company's periodic inventory recordsindicated the following:Sales revenueSales discounts Beginning inventoryPurchases10

Problem OverviewSpooky Corporation is a distributor of Halloween chocolates using a periodic…

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 5EA: On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each...

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Muller Computers stores its inventory in a warehouse that burned to the ground in late November, 2018. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory that was in the warehouse. The following information is available: Beginning Inventory 375,000 Purchases through November 30 470,250 Net sales revenue through november 30 793,000 The company's gross profit has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method. a.$528,550 b.$388,450 c.$369,950 d.$410,000
Symington Corporation uses the periodic inventory system. At December 31, 2024, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count: Goods held on consignment at Murphy Corporation $ 23,000 Merchandise shipped to a customer on 12/30/2024 free on board destination (merchandise arrived at customer's location on 1/3/2025) 12,000 Merchandise shipped to a customer on 12/29/2024 free on board shipping point (merchandise arrived at customer's location on 1/2/2025) 6,000 Merchandise purchased from a supplier, shipped free on board destination on 12/29/2024, in transit at year-end 24,000 Symington's 2024 ending inventory should be:
Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making sundaes. On November 17, 2024, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records: Inventory, January 1, 2024 Net purchases through November 17 Net sales through November 17 Historical gross profit ratio Fruit Toppings Required: 1. Calculate the estimated cost of each of the toppings lost in the fire. Marshmallow Chocolate Fruit Toppings $ 24,000 170,000 220,000 Estimated cost of lost Inventory 20% Marshmallow Toppings $ 7,400 40,000 59,000 30% Chocolate Toppings $3,400 12,400 20,400 30%
On November 21, 2024, a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $15,000. The following information was available from the records of Hodge's periodic inventory system: Inventory, November 1, 2024 Net purchases from November 1, to the date of the fire Net sales from November 1, to the date of the fire Based on recent history, Hodge's gross profit ratio on Product Tex is 40% of net sales. $ 115,000 143,000 223,000 Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method. Estimated loss from fire
Young Company, a camera store, lost some inventory in a fire on December 15. To file an insurance claim, the company must estimate its December 15 inventory using the gross profit method. For the past two years, Young Company's gross profit has averaged 45% of net sales. Its inventory records reveal the following data: (Click the icon to view the data.) Read the requirements. Requirement 1. Estimate the cost of the lost inventory using the gross profit method. Add: Less: Net purchases Estimated cost of goods sold: Less: Estimated cost of goods sold Estimated cost of ending inventory lost Data table Inventory, December 1 Transactions December 1-15: Purchases Purchases discounts Purchase returns Sales Print Done $ 57,500 490,000 19,000 70,600 663,000 X Requirements 1. Estimate the cost of the lost inventory using the gross profit method. 2. Prepare the income statement for December 1 to December 15 for this product through gross profit. Show the detailed computations of cost of goods…
Houghton Limited is trying to determine the value of its ending inventory as of February 28. 2022, the company's year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not. For each of the transactions below, specify whether the item in question should be included in ending inventory, and if so, at what amount. On February 26, Houghton shipped goods costing $800 to a customer and charged the customer $1,000. The goods were shipped with terms FOB shipping point and the receiving reportindicates that the customer received the goods on (a) Not Included March 2 On February 26. Crain Inc shipped goods to Houghton under terms FOB shipping point. The invoice price was S600 plus $40 for freight. The receiving report indicates that the goods were received by Houghton on March 2. (b) ncluded Houghton had $750 of inventory isolated in the warehouse The inventory is designated for a customer who has requested that the…
A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15,n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A. $500,000 debit to Accounts Payable and $500,000 credit to Cash B. $515,000 debit to Accounts Payable, $15,000 credit to Merchandise Inventory, and $500,000 credit to Cash C. $550,000 debit to Accounts Payable and $550,000 credit to Cash D. $550,000 debit to Accounts Payable, $535,000 credit to Cash, and $15,000 credit to Merchandise Inventory
On November 21, 2021, a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $22,000. The following information was available from the records of Hodge's periodic inventory system: Inventory, November 1 Net purchases from November 1, to the date of the fire Net sales from November 1, to the date of the fire $150,000 150,000 230,000 Based on recent history, Hodge's gross profit ratio on Product Tex is 35% of net sales. Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method. ✓ Answer is complete but not entirely correct. Estimated loss from fire $ 153,200 ×
Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count. For the accounting year-end December 31, 2021, ending inventory was originally determined to be $3,265,000. However, on January 17, 2022, John Howard, the company’s controller, discovered an error in the ending inventory count. He determined that the correct ending inventory amount should be $2,600,000. Danville is a privately owned corporation with significant financing provided by a local bank. The bank requires annual audited financial statements as a condition of the loan. By January 17, the auditors had completed their review of the financial statements which are scheduled to be issued on January 25. They did not discover the inventory error. John’s first reaction was to communicate his finding to the auditors and to revise the financial statements before they are issued. However,…
Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retsil inventory method to estimate ending inventory and cost of goods sold. The following dats are available for the three months ending March 31, 2021: Cost Retail Beginning inventory Net purchases Net narkups Net narkdowns Net sales $310, e00 $381, 000 750, 000 986, e00 21,000 7,e0e 946, B00 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retsil prices during the period. (Round ratio calculation to 2 declmal places (1.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost-to-Retall Cost Retall Ratio Beginning inventory 310,000 S 381,000 Net purchases Net markups Net markdowns Goods available far sale (excluding beg. inventory) Goods available for sale (including beg. inventory)…
Crane Company sells TVs. The perpetual inventory was stated as $37,300 on the books at December 31, 2020. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows. 1. TVs shipped to a customer January 2, 2021, costing $5,100 were included in inventory at December 31, 2020. The sale was recorded in 2021. 2. TVs costing $15,900 received December 30, 2020, were recorded as received on January 2, 2021. 3. TVs received during 2020 costing $4,000 were recorded twice in the inventory account. 4. TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost $9,400, were not received by the customer until January, 2021. The TVs were included in the ending inventory. 5. TVs on hand that cost $6,700 were never recorded on the books. Compute the correct inventory at December 31, 2020.
A GST registered company sells cameras. All of it's suppliers are also GST registered. At the end of August 2020, the accounting records were destroyed. You need to create journal entries relating to the purchases and sales of inventory for the year ended 31 August 2020 Periodic inventory system is followed, gross method for recording purchases is used and the purchases and sales of inventory are on credit, terms 2/10 net 30. 1) credit sales (including GST) - $2,231,000 2) Sales allowances (excluding GST) - $40,000 3) Cash receipts from customers within the discount period - $2,254,000 4) Inventory purchases on credit (including GST) - $943000 5) Inventory Purchase returns and Allowances (excluding GST - $30000 6) Cash payments to suppliers within the discount period - $788900 Average gross profit is 40% Prepare journal entries for year ended 31 August 2020

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