Pattys pet store purchased merchandise on at a price

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Chapter 23 / Exercise 24
Exploring Economics
Sexton
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107.Patty's Pet Store purchased merchandise on October 10, 2006, at a price of $35,000, subject to credit terms of 2/10, n30. Patty's uses the gross method for recording purchases and uses perpetual inventory system.Required:(a.) Prepare the journal entry to record the purchase.(b.) Prepare the journal entry to record the payment of one-half the invoice amount on October 18, 2006.(c.) Prepare the journal entry to record the payment of the balance of the amount due on November 8, 2006. Answer:
Learning Objective: 1 Level of Learning: 3108.Boston Dollar Store uses the gross method to record purchase discounts, and uses a perpetual inventory system. Boston engaged in the following transactions during April:4/12Purchased $15,000 in merchandise subject to terms of 2/10, n30. The goods were shipped f.o.b. shipping point.4/13Received a billing from Orange Freight Lines for $300 for the 4/12 purchase.4/15Returned $1,000 of merchandise from the 4/12 purchase.4/20Paid balances due from 4/12 purchase.Required: Prepare journal entries to record the above transactions.
Learning Objective: 1 Level of Learning: 3Spiceland/Sepe/Tomassini, Intermediate Accounting, Fourth Edition45
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Exploring Economics
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Chapter 23 / Exercise 24
Exploring Economics
Sexton
Expert Verified
Chapter 8 Inventories MeasurementUse the following to answer questions 109-113:Shown below is the activity for one of the products of Random Creations:January 1 balance, 80 units @ $50 $4,000Purchases:January 18: 40 units @ $51January 28: 40 units @ $52Sales:January 12: 30 unitsJanuary 22: 30 unitsJanuary 31: 45 units 109.Required:Compute the ending inventory and cost of goods sold assuming Random Creations uses FIFO.
Learning Objective: 4 Level of Learning: 346Spiceland/Sepe/Tomassini, Intermediate Accounting, Fourth Edition
Chapter 8 Inventories Measurement110.Required:Compute the ending inventory and cost of goods sold assuming Random Creations uses LIFO and perpetual inventory system. Answer: Perpetual LIFODatePurchasedSoldBalanceBeginning Inv. 80 @ $50 = $4,00080 @ $50$4,000Jan. 1230 @ $50 = $1,50050 @ $50$2,500Jan. 1840 @ $51 = $2,04050 @ $5040 @ $51$4,540Jan. 2230 @ $51 = $1,53050 @ $5010 @ $51$3,010Jan. 2840 @ $52 = $2,08050 @ $5010 @ $5140 @ $52$5,090Jan. 3140 @ $525 @ $51 = $2,33550 @ $50Total cost of goods sold$5,3655 @ $51$2,755Learning Objective: 4 Level of Learning: 3

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