5-7 - a through e . (Amounts in parentheses do not require...

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Page 7 of 11 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview 5. award: 1 out of 1 point because Mechanic sends a $92 credit memorandum to compensate. However, Radica returns the remaining 29 units to Mechanic. Mechanic restores the 29 returned units to its inventory. Date General Journal Debit Credit May 15 Accounts Payable 411 Merchandise Inventory 411 Explanation: Purchased merchandise on credit (720 ! $11) = 7,920. a. Returned unwanted merchandise (251 ! $11) = 2,761. c. Allowance for mis-colored goods and return of mis-colored merchandise = $92 + (29 ! $11) = 411. [The following information applies to the questions displayed below.] Using your accounting knowledge, fill in the blanks in the following separate income statements
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Unformatted text preview: a through e . (Amounts in parentheses do not require a minus sign in front of them. Omit the "$" sign in your response.) (a) Sales $ 82,800 Cost of goods sold Merchandise inventory (beginning) 7,866 Total cost of merchandise purchases 35,439 Merchandise inventory (ending) ( 8,355 ) Cost of goods sold 34,950 Gross profit 47,850 Expenses 9,000 Net income (loss) $ 38,850 Worksheet Learning Objective: 05-C1 Learning Objective: 05-C4 (a) Sales $ 82,800 Cost of goods sold Merchandise inventory (beginning) 7,866 Total cost of merchandise purchases 35,439 Merchandise inventory (ending) ( 8,355 )...
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.

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