Chapter 5 Accounting for Merchandising Operations

# Chapter 5 - BUSI1002R_Introduction to Accounting_Ch.5_Questions P.1 Chapter 5 Accounting for Merchandising Operations(Discussion QS 5-4 QS 5-6

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P.1 Chapter 5 Accounting for Merchandising Operations (Discussion: QS 5-4, QS 5-6, Assignments: P 5-2A, P5-3A) QS 5-4 Accounting for shrinkage- perpetual system Crystal Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Crystal uses the perpetual inventory system). Merchandise inventory B. crystal, capital Sales Sales discounts \$42,000 124,900 275,300 5,200 Sales returns and allowances Cost of goods sold Depreciation expenses Salaries expense Miscellaneous expenses \$7,600 115,000 12,000 45,000 7,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is \$40,600. Prepare the entry to record any inventory shrinkage. QS 5-6 Computing and interpreting acid-test ratio Use the following information on current assets and current liabilities to compute and interpret the acid-test ratio. Explain what the acid-test ratio of a company measures. Cash

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## This note was uploaded on 04/20/2010 for the course BUSI BUSI1002 taught by Professor Drjasmine during the Spring '10 term at HKU.

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Chapter 5 - BUSI1002R_Introduction to Accounting_Ch.5_Questions P.1 Chapter 5 Accounting for Merchandising Operations(Discussion QS 5-4 QS 5-6

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