ans The records for Uptown Pet Shop showed the following:Sales RevenueBeginning Merchandise Inventory$225,000$40,000Purchases of Merchandise Inventory during the period $144,000Cost of Goods Sold$172,000What is the amount of the ending Merchandise Inventory?A. $212,000.B. $144,000.C. $12,000.D. $15,000.E. None of the above.

Step 1: Definition of Ending InventoryEnding inventory refers to the value of unsold goods that…

Answered: The records for Uptown Pet Shop showed…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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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.
Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Jaffe Co. on February 28 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Coronado Co. on October 31 by the gross profit method, presenting details of the computations. b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that 366,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during May through October?
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Matt Henry owns a business called Henrys Sporting Goods. His beginning inventory as of January 1, 20--, was 45,000, and his ending inventory as of December 31, 20--, was 57,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
What is the amount of the ending merchandise inventory?
For the current year, Hodges Department Store reported the following data: Goods available for sale $1,074,450 Dec. 31, inventory balance 85,430 The current replacement cost of inventory on balance sheet data is $91,730. Using the lower-of-cost-or-market rule, what is the cost of goods sold by Hodges Department Store? A. $982,720 B. $898,060 C. $897,290 D. $989,020
If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory September 30, based on the following data? Sep. 1 Merchandise inventory (at cost) $74,605 Sep. 1-30 Purchases, net (at cost) 182,938 Sep. 1-30 Sales 138,979 Oa. $160,258 Ob. $97,285 Oc. $54,881 Od. $41,694
On the basis of the following data, what is the estimated cost of the merchandise inventory on October 31 by the retail method? Cost Retail Oct. 1 Merchandise Inventory $2,25,000 $3,24,500 Oct. 1-31 Purchases (net) 3,35,000 4,75,500 Oct. 1-31 Sales (net) 7,00,000 a) $372,000 b) $140,000 c) $70,000 d) $100,000

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