Solution 2 - @ $120 30,000 500 @ $290 145,000 825 @ $160...

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Homework #2 Solution Debit Credit 1 a) 1-Jun Inventory 300 A/P 300 3-Jun A/P 100 Inventory 100 5-Jun A/P 200 Cash 196 Inventory 4 7-Jun Inventory 1,125 A/P 1,000 Cash 125 9-Jun Inventory 525 A/P 500 Cash 25 21-Jun A/P 150 Inventory 150 8-Jul A/P 1,350 Cash 1,350 b) Inventory 250 100 300 4 1,125 150 525 1,946 2 a) 1-Sep COGS 300 Inventory 300 A/R 900 Sales 900 5-Sep Inventory 50 COGS 50 Sales Returns 200 A/R 200 16-Sep Cash 700 A/R 700 17-Sep COGS 1,200 Inventory 1,200 A/R 2,000 Sales 2,000 19-Sep Inventory 150 COGS 150
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Sales Returns 400 A/R 400 25-Sep Cash 1,584 Sales Discounts 16 A/R 1,600 b) Sales $2,900 (Sales Returns) (600) (Sales Discounts) (16) Net Sales 2,284 (COGS) (1,300) Gross Profit $984 3 a) COGS: Ending Inventory: 75 @ $3.30 247.50 105 @ 220 @ $3.25 715.00 80 @ $2.95 236.00 190 @ $2.90 551.00 145 @ $2.50 362.50  $2,112 b) COGS: 250 @ $2.50 625.00 Ending Inventory: 190 @ $2.90 551.00 30 @ 80 @ $2.95 236.00 75 @ 190 @ $3.25 617.50  $2,030 c) a. 250
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Unformatted text preview: @ $120 30,000 500 @ $290 145,000 825 @ $160 132,000 $307,000 b. 250 @ $120 30,000 500 @ $250 125,000 825 @ $155 127,875 $282,875 c. LCM write down (or COGS) $24,125 Inventory 24,125 4 a) $210,000 b) Bad Debt Expense 210,000 Allowance for Bad Debt 210,000 c) $150,000 Allowance 60,000 210,000 150,000 5 a) Allowance 92,000 A/R 92,000 A/R 9,000 Allowance 9,000 Cash 9,000 A/R 9,000 Allowance 92,000 71,000 9,000 66,000 54,000 b) 3,300,000 * 0.02 = $66,000 c) Bad Debt Expense 66,000 Allowance for Bad Debt 66,000 d) $2,900,000 (54,000) $2,846,000 Gross Profit: $2.50 262.50 Sales 5,325 (COGS) (2,112) GP $3,213 Gross Profit: $3.25 97.50 Sales 5,325.00 $3.30 247.50 (COGS) ### $345 GP $3,296...
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This note was uploaded on 07/02/2011 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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Solution 2 - @ $120 30,000 500 @ $290 145,000 825 @ $160...

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