Adjust for Inventory. The physical inventory count indicated 13,000 t-shirts were on hand. To completethis entry, you will need to: Record the dollar value of the ending inventory (13,000 shirts x Cost of eachshirt); Reverse the 2020 ending inventory (Remember: Graphix uses a periodic FIFO inventory method);Reverse the Purchases account (as this is a temporary account) and the purchase returns account (also atemporary account); Calculate COGS using the above values. merchandise inventory for the previousyear is $172,203. The costs of the shirts were $8 for 18000, then $9.50 for 15000 with 10000 returned, then$12 for 25000, then $10 for 17500, then $9 for 23000 with 7000 shirts gained back from sale returns, then $10.50 for 38000

To adjust the inventory and calculate the cost of goods sold (COGS), we will follow the FIFO…

Answered: Adjust for Inventory. The physical…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Record the following transactions in the general journal. The company uses perpetual inventory. Eliminate explanations. When completed, upload your file using pdf or doc only to this problem. Nov 1 Purchased merchandise for $1,500 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1. 5 Returned $200 of defective merchandise purchased on November 1. 7 Paid cash for the November 1 purchase. 10 Paid $90 cash for transportation cost from the November 1 purchase. 13 Sold merchandise for $1,600 on credit. The cost of the merchandise is $800 16 Granted credit to customer from November 13 transaction. The returned items are priced at $300 and the cost is $130; the items were not damaged and were returned to inventory.
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Journalizing purchase and sale transactions Journalize the following transactions that occurred in November 2018 for Julie’s Fun World. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Julie’s Fun World estimates sales returns at the end of each month.
Record journal entries for the following transactions for Captain Harry Outfitters using the perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. Captain Harry Outfitters purchased 100 tents for $15,000 on account. 2. Captain Harry Outfitters purchased 10 display cases for $4,100 on account. 3. Captain Harry Outfitters purchased 50 rain ponchos for $800 cash. 4. Captain Harry Outfitters purchased 25 cartons of price tags for $255 for cash. 5. Captain Harry Outfitters paid for shipping costs for the purchase in transaction 1. Cost is $410. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5.
You have been provided with the following information for LnS Shoe Outlet which accounts forits inventory using the periodic system. Its financial year ends September 30. All purchases andsales are made on account.§ Physical count at beginning of September 30, 2020 valued inventory of shoes at$469,780.§ Included in the physical count was shoes purchased for $20,840 on September 17 fromKmart. The shoes were shipped f.o.b. destination point on September 30 and arrivedOctober 7. The invoice was received and recorded on appropriately.§ Shoes purchased from Walmart on September 25 for $17,080 and shipped f.o.b.destination were received on September 30 after inventory had been counted. Theinvoice was received and recorded appropriately.§ On September 29, shoes were received from Leather Made with an invoice price of$31,260. The shoes were shipped to LnS Shoe Outlet f.o.b. destination. The invoice,which had not yet arrived, had not been recorded on September 30.§ Chef shoes sold to Holiday…
XY Ltd’s sells T-shirts. It uses the periodic inventory system. It’s inventory at the beginning of the month June and all purchases during the month of June 2019 are provided as below. Ignore GST. Units Total cost ($) 1/6 Beginning inventory 1050 18,900 10/6 Purchase 750 14,175 15/6 Purchase 450 8,910 23/6 Purchase 750 15,750 Totals 3,000 $57,735 A physical count on 30 June verified that 975 units were on hand.Required:a) Determine the Ending inventory and Cost of Sales for the month of June, using the FIFO costing method. b) If all inventories are sold in the same price of $50, prepare the relevant part of the income statement for the month of June.c) Would you recommend the Perpetual Inventory System to the management of XY Ltd? Explain the reason for your recommendation.
A Swoosh Sports outlet store began December 2021 with 47 pairs of running shoes that cost the store $34 each. The sale price of these shoes was $63. During December, the store completed these inventory transactions: (Click the icon to view the inventory transactions.) Read the requirements. Requirement 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. Swoosh Sports uses FIFO This is apparent from the flow of costs out of inventory. For example, the December 13 sale shows unit cost of $34, which came from the beginning inventory FIFO, and only FIFO, works. Requirement 2. Determine the store's cost of goods sold for December. Also compute gross The cost of goods sold is $ 3,110 The gross profit for December is $ 2,539 Requirement 3. What is the cost of the store's December 31 inventory of running shoes? The cost of the company's inventory at December 31 is 2106 Data table Dec 2 Dec 9…
Prepare the journal entries to record the following transactions on Skysong, Inc.'s books using a perpetual inventory system. On March 2, Riverbed Company sold $932,000 of merchandise on account to Skysong, Inc., terms 3/10, n/30. The cost of the merchandise sold was $592,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation I eTextbook and Media List of Accounts norcal_archives_20....zip On March 6, Skysong, Inc. returned $93,200 of the merchandise purchased on March 2. The cost of the returned merchandise was $59,200. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) A Debit QCA 5.docx Credit response essay.docx N
Can you help me explain how does it work? what is $5000 stand for and $2400 stand for? A seller uses a perpetual inventory system and on April 4 it sells $5,000 in merchandise with a cost of $2,400 to a customer on credit terms of 3/10, n/30. Complete the two journal entries to record the sales transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first journal entry is to record the revenue part of the transaction and the second journal entry is to record the cost part.
XY Ltd’s sells T-shirts. It uses the periodic inventory system. It’s inventory at the beginning of the month June and all purchases during the month of June 2019 are provided as below. Ignore GST. Units Total cost ($) 1/6 Beginning inventory 1050 18,900 10/6 Purchase 750 14,175 15/6 Purchase 450 8,910 23/6 Purchase 750 15,750 Totals 3,000 $57,735A physical count on 30 June verified that 975 units were on hand.Required:a) Determine the Ending inventory and Cost of Sales for the month of June, using the FIFO costingmethod.b) If all inventories are sold in the same price of $50,…
A retailer uses the perpetual inventory and First in, First Out method to value its inventory and cost of goods sold. The business recorded the following inventory transactions during the month of May. Instructions: Write you answers by hand, scan your working papers and upload to the link on the main page of the Moodle website as a PDF file. Show any calculations. Printing the problem information is permitted but only for personal use during the exam. a) Use the FIFO (first in, first out) cost method to calculate the cost of goods sold and ending inventory for May. Calculate inventory and cost of goods sold to the nearest dollar ($1).b) Prepare the journal entries to record sales transactions on May 7 and 19. All sales were on account c) If the retailer uses a periodic inventory and Average cost method to value its inventory and cost of goods sold. Calculate the cost of goods sold for the month of May. Instructions: Write you answers by…
Computers's Merchandise Inventory account at year-end is showing a balance of $43,000. The physical count of inventory came up with $42,500. Journalize the adjusting entry needed to account for the inventory shrinkage. The company uses the perpetual inventory system.
Addison uses a perpetual inventory system. The photo attached is about one inventory item for the month of September. If Addison uses LIFO, what is the cost of the ending merchandise inventory on September 30th?

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