Sunny Store is a retail company that uses the periodic inventory system. The following account balances are provided: • Sales: $200,000 • Purchases: $120,000 • Inventory (Beginning): $25,000 ⚫ Inventory (Ending): $20,000 . • Purchase returns and allowances: $4,000 • Purchase discounts: $6,000 • . Transportation-in: $3,000 Sales discounts: $10,000 Sales returns and allowances: $8,000 Calculate Sunny Store's net sales.

Sunny Store is a retail company that uses the periodic inventory system. The following account balances are provided: • Sales: $200,000 • Purchases: $120,000 • Inventory (Beginning): $25,000 ⚫ Inventory (Ending): $20,000 . • Purchase returns and allowances: $4,000 • Purchase discounts: $6,000 • . Transportation-in: $3,000 Sales discounts: $10,000 Sales returns and allowances: $8,000 Calculate Sunny Store's net sales.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 8Q: Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to...

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Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Purchase Discounts For each of the following transactions of Buckeye Corporation, prepare the appropriate journal entry. (All purchases on credit are made with terms of 1/10, n/30, and Buckeye uses the periodic system of inventory.) July 3: Purchased merchandise on credit from Wildcat Corp. for $3,500. July 12: Paid amount owed to Wildcat Corp.
Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
Global Company sold merchandise for $11,700 on account. The cost of the items sold was $7,900. If the company uses the perpetual inventory system, which of the following best reflects the journal entry that should be prepared to record this transaction? Debit Credit A. Sales revenue 11,700 Accounts receivable 11,700 Cost of goods sold 7,900 Merchandise inventory 7,900 B. Accounts receivable 11,700 Merchandise inventory 7,900 Sales revenue 3,800 C. Accounts receivable 3,800 Sales revenue 3,800 D. Accounts receivable 11,700 Sales revenue 11,700 Cost of goods sold 7,900 Merchandise inventory 7,900 Group of answer choices A. B. C. D.
You are given the following transactions for an entity that uses the periodic inventory system: Transaction Details of 1 Credit sales for the week, R30 705(VAT inclusive). 2 3 Electronic funds transfer (EFT) payment received from of R3 540 Green Wholesalers in full settlement of account. Settlement discount granted R690. Bought equipment for cash from Capital Equip for R23 000(VAT inclusive). Instructions: For each transaction, you must indicate which subsidiary journal the transaction will be entered. ■You must then indicate whether the VAT Input account or the VAT Output account in the general ledger must be debited or credited. You must then calculate the VAT amount and enter it in the amount column. Transaction Subsidiary journal General ledger account Amount 1 3
Prepare the journal entry using perpetual inventory system and periodic inventory system.
Using the perpetual inventory system, journalize the entries for the following selected transactions: Sold merchandise on account, for $12,000, terms n/30. The cost of the merchandise sold was $6,500. Sold merchandise to customers who used MasterCard and VISA, $9,500. The cost of the merchandise sold was $5,300. Sold merchandise to customers who used American Express, $2,900. The cost of the merchandise sold was $1,700. Paid an invoice from First National Bank for $385, representing a service fee for processing MasterCard and VISA sales. (a) (b) (c) (d) (e) Paid a $75 processing fee associated with sales made to customers who used American Express.
Hell Ltd. sold merchandise for $20,000 on credit. The cost of merchandise sold was $11,900. The journal entries to record this transaction under the perpetual inventory system would be
A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made in 11 days? O a debit to Cash for $64,000 and a credit to Accounts Payable for $64,000 O a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1280, and a credit to Cash for $62,720 O a debit to Accounts Payable for $64,000, a credit to Cash for $1280, and a credit to Merchandise Inventory for $62,720 a debit to Accounts Payable for $64,000 and a credit to Cash for $64,000 Quoction 4 of 38