Chapter 5 Solutions - PRACTICE EXERCISES PE 51A $162,300...

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PRACTICE EXERCISES PE 5–1A $162,300 ($32,800 + $379,500 – $250,000) PE 5–1B $490,000 ($375,000 + $815,000 – $700,000) PE 5–2A Cost of merchandise sold: Merchandise inventory, June 1. ................... $ 35,500 Purchases. ...................................................... $384,000 Less: Purchases returns and allowances. . $11,000 Purchases discounts. ......................... 3,000 14,000 Net purchases. ............................................... $370,000 Add freight in. ................................................. 6,000 Cost of merchandise purchased. ........... 376,000 Merchandise available for sale. .................... $411,500 Less merchandise inventory, June 30. ....... 40,500 Cost of merchandise sold. ............................ $371,000 PE 5–2B Cost of merchandise sold: Merchandise inventory, August 1. ............... $120,000 Purchases. ...................................................... $780,000 Less: Purchases returns and allowances. . $20,000 Purchases discounts. ......................... 10,000 30,000 Net purchases. ............................................... $750,000 Add freight in. ................................................. 5,000 Cost of merchandise purchased. ........... 755,000 Merchandise available for sale. .................... $875,000 Less merchandise inventory, August 31. ... 150,000 Cost of merchandise sold. ............................ $725,000
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a. Accounts Receivable. .................................................... 41,000 Sales. .......................................................................... 41,000 Cost of Merchandise Sold. ............................................ 22,500 Merchandise Inventory. ........................................... 22,500 b. Cash. ................................................................................ 40,590 Sales Discounts. ............................................................ 410 Accounts Receivable. .............................................. 41,000 PE 5–3B a. Accounts Receivable. .................................................... 16,000 Sales. .......................................................................... 16,000 Cost of Merchandise Sold. ............................................ 9,600 Merchandise Inventory. ........................................... 9,600 b. Cash. ................................................................................ 15,680 Sales Discounts. ............................................................ 320 Accounts Receivable. .............................................. 16,000 PE 5–4A a. $19,800. Purchase of $21,500 less the return of $1,500 less the discount of $200 [($21,500 – $1,500) × 1%]. b. Accounts Payable PE 5–4B a. $4,410. Purchase of $8,000 less the return of $3,500 less the discount of $90 [($8,000 – $3,500) × 2%)]. b.
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Chapter 5 Solutions - PRACTICE EXERCISES PE 51A $162,300...

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