Inventory+Systems+and+Calculating+Revenues,+Expenses,+and+Income+Brainmass

Inventory+Systems+and+Calculating+Revenues,+Expenses,+and+Income+Brainmass

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QS 5-8 Identify whether each description best applies to a periodic or a perpetual inventory system. a. Provides more timely information to managers. b. Requires an adjusting entry to record inventory shrinkage. c. Markedly increased in frequency and popularity in business within the past decade. d. Records cost of goods sold each time a sales transaction occurs. Exercise 5-9 Fill in the blanks in the following separate income statements a through e . Identify any negative amount by putting it in parentheses. Exercise 5-13 Journalize the following merchandising transactions for CSI Systems assuming it uses ( a ) a periodic inventory system and ( b ) a perpetual inventory system. 1. On November 1, CSI Systems purchases merchandise for $1,400 on credit with terms of 2_5, n_30, FOB shipping point; invoice dated November 1. 2. On November 5, CSI Systems pays cash for the November 1 purchase. 3. On November 7, CSI Systems discovers and returns $100 of defective merchandise
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Unformatted text preview: purchased on November 1 for a cash refund. 4. On November 10, CSI Systems pays $80 cash for transportation costs with the November 1 purchase. a b c d e Sales $60,000 $42,500 $36,000 $ ? $23,600 Cost of good sold Merchandise inventory (beginning) 6,000 17,050 7,500 7,000 2,560 Total Cost of merchandise purchases 36,000 ? ? 32,000 5,600 Merchandise inventory (ending) ? (2,700) (9,000) (6,600) ? Cost of goods sold 34,050 15,900 ? ? 5,600 Gross profit ? ? 3,750 45,600 ? Expenses 9,000 10,650 12,150 2,600 6,000 Net income (loss) $ ? $15,950 $(8,400) $43,000 $ ? 5. On November 13, CSI Systems sells merchandise for $1,500 on credit. The cost of the merchandise is $750. 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items sell for $200 and cost $100....
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Inventory+Systems+and+Calculating+Revenues,+Expenses,+and+Income+Brainmass

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