XYZ company prepares financial statements monthly and the company uses FIFO method under a perpetual inventory system. The begining inventory for the month of december was 2500 TL (2.500 units at unit cost of 1TL). Journalize the below transactions of XYZ company for the month of December. 1. Purchased 5000 units of inventory on account, FOB destination, at a unit cost of 1.5 TL per unit 2. Sold 4500 units of inventory on account to Customer A, FOB shipping point, for 3 TL per unit. 3. XYZ granted credit to the customer A, who returned 100 units of inventory as they did not match the required specifications. The items were returned to inventory from the most recent purchase price. 4. XYZ bought 1000 units of inventory at a unit cost of 2 TL. The journal entry for item 4 involves a debit to for 2000 TL and the balance of the inventory account equals units, a total of TL. inventory 6650 4100 3100 4650 Purchases
XYZ company prepares financial statements monthly and the company uses FIFO method under a perpetual inventory system. The begining inventory for the month of december was 2500 TL (2.500 units at unit cost of 1TL). Journalize the below transactions of XYZ company for the month of December. 1. Purchased 5000 units of inventory on account, FOB destination, at a unit cost of 1.5 TL per unit 2. Sold 4500 units of inventory on account to Customer A, FOB shipping point, for 3 TL per unit. 3. XYZ granted credit to the customer A, who returned 100 units of inventory as they did not match the required specifications. The items were returned to inventory from the most recent purchase price. 4. XYZ bought 1000 units of inventory at a unit cost of 2 TL. The journal entry for item 4 involves a debit to for 2000 TL and the balance of the inventory account equals units, a total of TL. inventory 6650 4100 3100 4650 Purchases
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![XYZ company prepares financial statements monthly and the company uses FIFO method under a perpetual inventory system. The begining inventory for the
month of december was 2500 TL (2.500 units at unit cost of 1TL). Journalize the below transactions of XYZ company for the month of December.
1.
Purchased 5000 units of inventory on account, FOB destination, at a unit cost of 1.5 TL per unit
2.
Sold 4500 units of inventory on account to Customer A, FOB shipping point, for 3 TL per unit.
3.
XYZ granted credit to the customer A, who returned 100 units of inventory as they did not match the required specifications. The items were returned to
inventory from the most recent purchase price.
4. XYZ bought 1000 units of inventory at a unit cost of 2 TL.
The journal entry for item 4 involves a debit to
for 2000 TL and the balance of the inventory account equals
units, a total of
TL.
inventory
6650
4100
3100
4650
Purchases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6fd52513-b9d7-4f3b-9b84-1aaebbddd8de%2Fb8947883-a842-43e8-9ef7-67d9d0fa1726%2Fflzuapg_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ company prepares financial statements monthly and the company uses FIFO method under a perpetual inventory system. The begining inventory for the
month of december was 2500 TL (2.500 units at unit cost of 1TL). Journalize the below transactions of XYZ company for the month of December.
1.
Purchased 5000 units of inventory on account, FOB destination, at a unit cost of 1.5 TL per unit
2.
Sold 4500 units of inventory on account to Customer A, FOB shipping point, for 3 TL per unit.
3.
XYZ granted credit to the customer A, who returned 100 units of inventory as they did not match the required specifications. The items were returned to
inventory from the most recent purchase price.
4. XYZ bought 1000 units of inventory at a unit cost of 2 TL.
The journal entry for item 4 involves a debit to
for 2000 TL and the balance of the inventory account equals
units, a total of
TL.
inventory
6650
4100
3100
4650
Purchases
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