Bill sells inventory with a cost of $40,000 for $60,000. Bill expects 4 percent of the inventory to be returned. Bill has 3 percent returned and then the return period expires. Please prepare all journal entries.
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Bill sells inventory with a cost of $40,000 for $60,000. Bill expects 4 percent of the inventory to be returned. Bill has 3 percent returned and then the return period expires. Please prepare all
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- On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a shoe retailer, for 70 each. FootAction has the right to return the shoes for any reason up to March 31, 2019, for a full refund. The cost of each pair of shoes is 32. ShoeKing predicts that it is probable that 40 pairs of the shoes will be returned. ShoeKing uses the perpetual method for inventory. Required: 1. Prepare ShoeKings journal entry on January 5, 2019, to account for this transaction. 2. Assume that FootAction returns 35 pairs of shoes on March 31, 2019. Prepare the journal entry to record this return.Find the outstanding balance due at the end of the credit period. Scotty purchased merchandise with a list price of $235,000 with an invoice date of February 10th. He receives the goods on February 15. He is offered a 20/5/5 trade discount and terms of sale 3/15,1/25, n60. He makes a $60,000 partial payment on February 18 and a second partial payment of $40,000 on March 1Patricia Flynn owns a business called Patty's Place. The company uses a periodic inventory system. The beginning inventory balance was $31,000. A physical count determined her ending inventory was $25,000. Based on past experience, Patricia estimates that $3,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $900. Which of the following journal entries would record the ending inventory? a.Debit Income Summary for $25,000 and credit Merchandise Inventory for $25,000 b.Debit Income Summary for $6,000 and credit Merchandise Inventory for $6,000 c.Debit Merchandise Inventory for $6,000 and credit Cost of Goods Sold for $6,000 d.Debit Merchandise Inventory for $25,000 and credit Income Summary for $25,000
- Mark has a small retail store and sells one product. His beginning inventory consisted of 1,000 products at $4 each for a total of $4,000. During the year, Mark made the following purchases of the product: March 1 5,000 products at $5 each = $25,000 August 1 1,000 products at $6 each = $6,000 Mark uses the FIFO method of inventory valuation and he sells 5,000 products during the current year. a. Calculate the total cost of goods available for sale. b. Calculate the cost of the ending inventory. c. Calculate the cost of goods sold.Sydney returns $1,300 of the $29,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871. Note: Enter debits before credits. Date General Journal Debit Credit May 12. Vinnie has a small retail store and sells one product. His beginning inventory consisted of 1,000 products at $4 each for a total of $4,000. During the year, Vinnie made the following purchases of the product: March 1 5,000 products at $5 each = $25,000 August 1 1,000 products at $6 each = $6,000 Vinnie uses the LIFO method of inventory valuation and he sells 5,000 products during the current year. Calculate the total cost of goods available for sale. Calculate the cost of the ending inventory. Calculate the cost of goods sold.
- Gemstone sells 400 units of inventory for $12,000 to Jades on account. The units cost $12 each. Jades returns 30 units before paying the invoice. Gemstone uses the periodic method for inventory management. a) Prepare all journal entries for these transactions for Gemstone. b) Prepare all journal entries for these transactions for Jades.ABC is a Wholesale Merchandise trader. He uses periodic inventory system. He received an order from the customer and asking for 100 numbers of Desktop computers. The business is ready to give offers @ 10% trade discount on the invoice price if the customer place an order before 27th April 2021. Selling Price of the product is OMR 120 each. Which of the following journal entry is Correct in the books of ABC Merchandise business assuming that the order was placed by the customer on 25th April 2021? a. Debit Accounts payable OMR 10,800 Credit Merchandise Inventory OMR 10,800 b. Debit Accounts receivable OMR 12,000 Credit Sales OMR 12,000 c. Debit Accounts receivable OMR 10,800 Credit Sales 10,800 e d. Debit Purchase OMR 12,000 Credit Accounts payable OMR 10,800 Credit Discount 1,200Prepare journal entries for the SALES (Jane, seller) side of the purchase transactions above: October 1: Jane sold $1,000 of goods on account. Terms of the sale are 4/10, n 30. The invoice is dated October 1. Assume the cost of the inventory to Jane (amount she purchased it for) is $700. Record Jane’s entry. 1: Perpetual 2:Periodic October 7: Jake returned $50 of the $1,000 of goods from the October 1 purchase and received full credit. The cost of this inventory to Jane is $30. Record Jane’s entry. 1: Perpetual 2: Periodic October 11: Jake paid the amount due from the October 1 purchase, less the return on October 7. Record Jane’s entry. 1: Perpetual 2:Periodic October 3: Jake paid Jane $30 cash for freight charges from UPS for the October 1 purchase. Record Jane’s entry. 1: Perpetual 2: Periodic
- 12 Sydney returns $1,400 of the $28,000 of goods to Troy, who receives them the same day and restores them to its invento The returned goods had cost Troy $938. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. th Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 repare journal entries that Sydney Retailing (buyer) records for these three transactions. View transaction list Journal entry worksheet < 1 2 3 Date May 11 Sydney accepts delivery of $28,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $18,760. Record Sydney's entry for this transaction. Note: Enter debits before…On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $480 per board. The cost to Bates is $150 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. Assume the perpetual inventory system is used. A. the initial sale B. the subsequent customer payment on March 10 If an amount box does not require an entry, leave it blank.Towbin Products sells merchandise On credit for $7,000 on December 1, 2019. The merchandise cost Towbin $4,900 (70% of the selling price). Towbin estimates that returns and allowances will amount to 4% of sales. On December 22, 2019, a customer returns for credit merchandise originally sold on December 1 for $200. 1. Assume Towbin uses a periodic inventory system. Prepare the journal entries to record the preceding sale and the return of merchandise. 2. Assume that Towbin uses a perpetual inventory system. Prepare the journal entries to record the preceding sale and the return of merchandise. 3. Consider your answer to Requirement 1. How would the preceding information be reflected on Towbin’s December 31, 2019, financial statements? 4. Next Level What is the conceptual advantage of recording sales returns and allowances as a reduction of' revenue?