Resgan Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Reagan's records are as follows:Inventory at Decenber 31 (based on a physical countof goods in Reagan's warchouse on December 31)$1,400,e0eAccounts payable at December 31:VendorBaker CorpanyCharlie CorpanyDolly CorpanyЕagler CompanуFull CompanyAmount$ 295,000248, 000Terms28, 10 days, пet 38Net 30Net 30330,eeeNet 30255, 0eeNet 30Greg CompanyNet 30Accounts payable, December 31$1,120,000Sales for the year$9,750,eeeAdditional Information:1. Parts held by Reagan on consignment from Charlie, amounting to $230,000, were included in the physical count of goods inReagan's warehouse and in accounts payable at December 31.2 Parts totaling $37,000, which were purchased from Full and paid for in December, were sold in the last week of the year andappropriately recorded as sales of $43,000. The parts were included in the physical count of goods in Reagan's worehouse onDecember 31 becouse the parts were on the loading dock waiting to be picked up by customers.3. Parts in transit on December 31 to customers, shipped f.o.b. shipping point on December 28, amounted to $64,000. The customersreceived the parts on January 6 of the following year. Sales of $70,000 to the customers for the parts were recorded by Reagan onJanuary 2.4. Retsilers were holding goods on consignment from Resgan, which had a cost of $360,000 and a retail value of $400,000.5. Goods were in transit from Greg to Reagen on December 31. The cost of the goods was $40,000, and they were shipped f.o.b.shipping point on December 29.6. A freight bill in the amount of $3,500 specifically relating to merchandise purchased in December, all of which was still in theinventory at December 31, was received on January 3. The freight bill was not included in either the inventory or in acountspayable at December 31.7. All the purchases from Baker occurred during the lsst seven days of the year. These items have been recorded in sccounts payableand eccounted for in the physical inventory at cost before discount. Reegan's policy is to pay invoices in time to take odventege ofall discounts, adjust inventory occordingly, and record accounts payable net of discounts.Required:Complete the following schedule of adjustments to the initial amounts. (Amounts to be deducted should be Indicated with a minussign.)AccountsPayable1,120,000 S 9,750,000InventorySaleeInitial amounts1,400,000SAdjustments-increase (decrease):1.2.3.4.5.6.7.Total adjustmentsAdjusted amounts1,400,0001,120,000$ 9,750,000

Compute the schedule of adjustment to the initial amount: Inventory($) Account payable($)…

Answered: No No No No No er 31

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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Sarasota Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from DeVito Ltd. for $24,080, terms n/30, FOB shipping point. The appropriate company paid freight costs of $602 on the merchandise purchased on April 3. Purchased supplies on account for $4,300. Returned merchandise to DeVito and received a credit of $3,010. The merchandise was returned to inventory for future resale. Paid the amount due to DeVito in full. 6 here to search 7 8 30 Record the above transactions in Sarasota's books. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 18°C Sunny
Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Rachet's records are as follows: Inventory at December 31 (based on a physical countof goods in Rachet's warehouse on December 31) $ 1,290,000 Accounts payable at December 31: Vendor Terms Amount Boxes Company 2%, 10 days, net 30 $ 273,000 Crates Company Net 30 218,000 Driver Company Net 30 308,000 Express Company Net 30 233,000 Freight Company Net 30 – Gears Company Net 30 – Accounts payable, December 31 $ 1,032,000 Sales for the year $ 9,200,000 Additional Information: Parts held by Rachet on consignment from Crates, amounting to $175,000, were included in the physical count of goods in Rachet's warehouse and in accounts payable at December 31. Parts totaling $26,000, which were purchased from Freight and paid for in December, were sold in the last week of the year and appropriately recorded as sales of $32,000. The parts were included in the…
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Resgan Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from Reagan's records are as follows: Inventory at Decenber 31 (based on a physical count of goods in Reagan's warehouse on December 31) $1,480, e0e Accounts payable at December 31: Vendor Terms Атount Baker Corpany Charlic Corpany Dolly Corpany Eagler Company Full Company $ 295, 0e0 248,eee 338,eee 255,0e0 28, 10 days, пet 38 Net 30 Net 30 Net 30 Net 30 Greg Company Net 30 Accounts payable, December 31 $1,120,0ee Sales for the year $9,750,000 Additional Information: 1. Parts held by Reagan on consignment from Charlie, amounting to $230,000, were included in the physical count of goods in Reagan's warehouse and in accounts payable at December 31. 2 Parts totaling $37,000, which were purchased from Full and paid for in December, were sold in the lost week of the year and appropriately recorded es sales of $43,000. The parts were included in the physical count of goods in Reagan's warehouse on…
Marigold Corp. uses a perpetual inventory system. The company had the following inventory transactions in April. April 3 Purchased merchandise from DeVito Ltd. for $33,000, terms 2/10, n/30, FOB shipping point. The appropriate company paid freight costs of $750 on the merchandise purchased on April 3. Purchased supplies on account for $5,400. Returned merchandise to DeVito and received a credit of $4,200. The merchandise was returned to inventory for future resale. 6 7 30 Paid the amount due to DeVito in full.
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What is the correct amount of accounts payable? Delish Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from accounting records on December 31, 2020 are as fallows: Inventory on December 31 based on physical count Accounts payable Sales 1 250 000 1 000 000 9 000 000 A. Parts held on consignment from another entity to Delish, the consignee, amounting to P165 000, were included in the physical count on December 31, 2020,and In accounts payable on December 31, 2020. B. P20 000 of parts which were purchased and paid for in December 2020, were sold in the last week of 2020 and appropriately recorded as sales of P28 000. The parts were included in the physical count on December 31, 2020 because the parts were on the loading dock waiting to be picked up by the customer, C. Parts in transit an December 31, 2020, shipped FOB shipping point on December 28, 2020, amounted to P34 000. The customers received the parts on lanuary 6, 2021. Sales of P40 00 to…
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Presented below are selected transactions for Flounder Company during September and October of the current year. Flounder uses a periodic inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $49,000, FOB destination, terms 1/15, n/30. 2 The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 5 Returned for credit $2,240 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $116,900, terms 2/10, n/30, FOB destination. 16 The correct company paid $2,500 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,600 for returned goods. These goods had cost Flounder Company $3,000 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale. 30 Paid Hillary Company the balance…
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