Unit 3 Notes.docx - Clover Hardware sold a range of...

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Clover Hardware sold a range of products. A few weeks ago, orders arrived for thegarden center and outdoor living areas. 500 grills, purchased at a cost of $75 each,were distributed among 10 locations. 200 were sold for $175 each across all locations.The cost of goods sold totals __________.a.)$2,500b.)$15,000c.)$35,000d.)$37,500200x75=15,000
1 — MerchandisingCalculate the cost of goods sold for a business.Milton's Tool and Tile sells a range of products. This week, the shippingdepartment received 500 gallons of paint, purchased at a cost of $20 each,which were distributed among 18 stores. 420 were sold for $30 each acrossall stores.The cost of goods sold equals ___________.
$8,400420x30=84003 — Expanded Income StatementCalculate the goods available for sale from an expanded income statement.The shipment Sally ordered for the summer collection at her clothing storearrived. As she reviewed the shipment, she referred to her expanded incomestatement below.The Goods Available for Sale total is __________.
Goods available for sale: beginning inventory + Cost of goods purchased.2 — Merchandising: Purchases, Sales, Discounts,Returns and AllowanceIdentify the account and amount recorded during a purchase discount or a salesdiscount.Paulsen Hardware offered a discount to customers who used the store creditcard to purchase lumber. If a customer paid his or her bill in full within 30days of a lumber purchase, 5% was deducted from the invoice amount, to beused as store credit on the customer’s next purchase.A frequent customer of the Paulsen Hardware store, George, bought $25,000worth of lumber using his store credit card. George paid his balance in full 27days after making the purchase.$1,250 would be recorded in the __________.a.)purchase discount accountb.)sales accountc.)purchase accountd.)sales discount accountCarson Hardware offers a discount to customers who use the store credit card onpurchases of building materials. When customers pay their bill in full within 15 days of apurchase, 2% can be deducted from the invoice amount, to be used as store credit ontheir next purchase.A frequent customer of the Pleasantville Carson Hardware store, Moira, used her storecredit card to buy 20 interior doors for $125 each. Moira paid her balance in full 10 daysafter the purchase.
Mike will record $50 in the __________.
Throughout September, Taylor Hardware offered a discount to customers who usedtheir store credit card on paint purchases. When customers paid their bill in full within 30days of a paint purchase, 10% was deducted from the invoice amount, to be used asstore credit on their next purchase.

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Term
Spring
Professor
StephenRussell
Tags
FIFO and LIFO accounting

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