Class Exercises 6.docx - S5–3 Suppose Marks uses the...

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S5–3Suppose Marks uses the perpetual inventory system to purchase T-shirts onaccount for $15,000 from an overseas supplier. It cost Marks $1,000 FOB supplier toship the T-shirts as well as duty and excise fees of $200. Marks was also fined $300for unloading the inventory in an unauthorized area.1.Compute the cost of inventory to Marks.
2.Marks pays $500 cash to deliver the goods to three regional retail outlets. Howwould this cost be recorded?
E5–3Suppose The Bay uses the perpetual inventory system and purchases $300,000 of sportinggoods on account from Nike on April 10, 2020. Credit terms are 1/10, net 30. The Bay payselectronically on April 20, 2020, and Nike receives the money the same day.Journalize The Bay’s (a) purchase and (b) cash payment transactions. What was The Bay’s netcost of this inventory?
P5–5ABuono Adventures, which uses the perpetual inventory system, has the following accountbalances (in alphabetical order) on July 31, 2020:Accounts Payable.......................................................................$21,600Accounts Receivable..................................................................23,200

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Term
Fall
Professor
PJ
Tags
Balance Sheet, Revenue, Generally Accepted Accounting Principles, E Buono

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