Moyer company hadthe following transactions during

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Survey of Accounting
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Chapter 4 / Exercise 1
Survey of Accounting
Warren
Expert Verified
104. Moyer Company hadthe following transactions during August:Aug. 5Purchased$2,800 of merchandise on account, terms 3/15 n/60, FOB shippingpoint.9Paid transportation cost on the August 5 purchase, $250.10Returned$400 of defectivemerchandisepurchasedon August 5.15Paid for the August 5 purchase, less the return andthe discount.Required:Assuming the perpetualinventory systemis used, preparethe journal entriesto recordthe above transactions.
105.The following data pertainto Duke Company for the year endedDecember31, 20X5:Beginninginventory$190,300Purchasesof inventory on credit during the year550,000Cost of goods sold during the year65% of salesSales (75% on credit) during the year800,000a)Prepare entriesfor the following transactions using a perpetualinventory system:1)Purchaseof inventory during 20X52)Sales during 20X53)Cost of goods sold during 20X5b)Computethe balance in the inventory account on December31, 20X5.Solution:
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Chapter 4 / Exercise 1
Survey of Accounting
Warren
Expert Verified
CHAPTER 5Merchandising Operations and the Accounting CycleGeneral JournalDateAccountsDebitCredit1)Inventory550,000AccountsPayable550,0002)Cash200,000AccountsReceivable600,000Sales Revenue800,0003)Cost of Goods Sold520,000Inventory520,000b)$190,300+ $550,000- $520,000= $220,300L.O. 1, 2ModeratePage: 186-188106.Britt Jewelers hadthe following transactions in April. Preparejournal entriesfor these transactions assuming Britt Jewelers usesa perpetualinventory system.Apr.2Britt received an $18,000invoice fromone of its suppliers. Terms were 2/10 n/30, FOB shippingpoint. Britt paid the freight bill amounting to $1,200.4Britt returned$2,500 of the merchandisebilled on April 2 becauseit was defective.5Britt sold $8,000of merchandiseon account,terms 3/15 n/30. The cost of the merchandisesold was $5,500.10Britt paid the invoice dated April 2, less the return and the discount.15A customerreturned$2,800 of merchandise sold on April 5. The cost of the returnedmerchandisewas $1,750.19Britt received paymenton the remaining amount duefromthe sale of April 5, less the returnandthe discount.147

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