Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4.5E
To determine
Concept Introduction:
FOB destination:
FOB destination stands for Free On Board destination. It is a term for selling the merchandise, under which the delivery of goods is completed when the goods are reached at buyer's destination. The goods in transit belong to the seller and seller bears the cost of transportation till the buyer's destination. In case of FOB destination, the goods in transit should be included in the seller inventory.
To Indicate:
The effects of the following transactions:
(a) Purchase
(b) Merchandise return
(c) Payment
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Purchase-related transactionsStylon Co., a women's clothing store, purchased $48,000 of merchandisefrom a supplier on account, terms FOB destination, 2/10, n/30. Stylon returned merchandise with an Invoice amount of $7,500, receiving acredit memo. Journalize Stylon's entries to record (a) the purchase, (b)the merchandise return, (c) the payment within the discount period of10 days, and (d) the payment beyond the discount period of 10 days.
Purchase-Related Transactions
Stylon Co., a women's clothing store, purchased $28,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30 using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $4,200, receiving a credit memo.
a. ournalize Stylon’s entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank
b. Journalize Stylon’s entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.
Purchase-Related Transactions
Poff's Co., a women's clothing store, purchased $53,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Poff's returned $7,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period.
a. Journalize Poff's entry to record the purchase. If an amount box does not require an entry, leave it blank.
Merchandise Inventory
Accounts Payable ~
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Check My Work
a. A purchase increases Merchandise Inventory and Accounts Payable.
b. Journalize Poff's entry to record the merchandise return. If an amount box does not require an entry, leave it blank.
Accounts Payable ~
Merchandise Inventory ~
c. Journalize Poff's entry to record the payment. If an amount box does not require an entry, leave it blank.
Chapter 4 Solutions
Survey of Accounting (Accounting I)
Ch. 4 - If merchandise purchased on account is returned,...Ch. 4 - Prob. 2SEQCh. 4 - Prob. 3SEQCh. 4 - On a multiple-step income statement, the excess of...Ch. 4 - As of December 31, 20Y4, Ames Corporation's...Ch. 4 - What distinguishes a retail business from a...Ch. 4 - Prob. 2CDQCh. 4 - Prob. 3CDQCh. 4 - Prob. 4CDQCh. 4 - Prob. 5CDQ
Ch. 4 - When you purchase a new car, the “sticker price”...Ch. 4 - Prob. 7CDQCh. 4 - Differentiate between the multiple and single-step...Ch. 4 - Prob. 9CDQCh. 4 - Can a business earn a gross profit but incur a net...Ch. 4 - Prob. 11CDQCh. 4 - Prob. 12CDQCh. 4 - Determining gross profit During the current year,...Ch. 4 - Determining cost of goods sold For a recent year,...Ch. 4 - Purchase-related transaction Burr Company...Ch. 4 - Purchase-related transactions A retailer Is...Ch. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Determining amounts to be paid on invoices...Ch. 4 - Prob. 4.8ECh. 4 - Sales-related transactions After the amount due on...Ch. 4 - Sales-related transactions Merchandise is sold on...Ch. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Adjustment for merchandise inventory shrinkage...Ch. 4 - Adjustment for Customer Refunds and Returns Assume...Ch. 4 - Prob. 4.17ECh. 4 - Multiple-step income statement On March 31, 20Y5,...Ch. 4 - Single-step income statement Summary operating...Ch. 4 - Multiple-step income statement Identify the enurs...Ch. 4 - Purchase-related transactions The following...Ch. 4 - Sales-related transactions The- following selected...Ch. 4 - Prob. 4.3PCh. 4 - Multiple-step income statement and report form of...Ch. 4 - Multiple-step income statement and report form of...Ch. 4 - Multiple-step income statement and report form of...Ch. 4 - Multiple-step income statement and report form of...Ch. 4 - Single-step income statement Selected accounts and...Ch. 4 - Prob. 4.5.2PCh. 4 - Prob. 4.6.1PCh. 4 - Prob. 4.6.2PCh. 4 - Prob. 4.1MBACh. 4 - Sales transactions Using transactions listed in...Ch. 4 - Prob. 4.3MBACh. 4 - Prob. 4.4MBACh. 4 - Prob. 4.5.1MBACh. 4 - Gross margin percent and markup percent Target...Ch. 4 - Gross margin percent and markup percent Target...Ch. 4 - Prob. 4.6MBACh. 4 - Gross profit percent and markup percent Deere &...Ch. 4 - Prob. 4.7.2MBACh. 4 - Gross profit percent and markup percent Deere &...Ch. 4 - Gross profit percent and markup percent...Ch. 4 - Gross profit percent and markup percent...Ch. 4 - Gross profit percent and markup percent...Ch. 4 - Prob. 4.9MBACh. 4 - Prob. 4.10.1MBACh. 4 - Gross profit percent and markup percent Companies...Ch. 4 - Prob. 4.10.3MBACh. 4 - Prob. 4.1CCh. 4 - Prob. 4.2CCh. 4 - Prob. 4.3.1CCh. 4 - Determining cost of purchase The following is an...Ch. 4 - Prob. 4.4.1CCh. 4 - Prob. 4.4.2CCh. 4 - Prob. 4.4.3CCh. 4 - Prob. 4.5C
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