Two different companies, Vogel and Hatcher, entered into the following inventory transactions during December. Both companies use a perpetual inventory system. - December 3 - Vogel Corporation sold inventory on account to Hatcher Corp. for $483,000, terms 1/10, r/30. This inventory originally cost Vogel $320,000. - December 8 - Hatcher Corp. returned inventory to Vogel Corporation for a credit of $3,200. Vogel returned this inventory to inventory at its original cost of $2,120. • December 12-Hatcher Corp. paid Vogel Corporation for the amount owed. Required: a. Prepare the journal entries to record these transactions on the books of Vogel Corporation. b. What is the amount of net sales to be reported on Vogel Corporation's income statement? c. What is the Vogel Corporation's gross profit percentage?
Two different companies, Vogel and Hatcher, entered into the following inventory transactions during December. Both companies use a perpetual inventory system. - December 3 - Vogel Corporation sold inventory on account to Hatcher Corp. for $483,000, terms 1/10, r/30. This inventory originally cost Vogel $320,000. - December 8 - Hatcher Corp. returned inventory to Vogel Corporation for a credit of $3,200. Vogel returned this inventory to inventory at its original cost of $2,120. • December 12-Hatcher Corp. paid Vogel Corporation for the amount owed. Required: a. Prepare the journal entries to record these transactions on the books of Vogel Corporation. b. What is the amount of net sales to be reported on Vogel Corporation's income statement? c. What is the Vogel Corporation's gross profit percentage?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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