Travis Company purchased merchandise on account from a supplier for $9,300, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, record the journal entries required for the above transactions.
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A: Discount on payment made = Total amount due x rate of discount = $60,000 x 3% = $1,800
Q: Travis Company purchased merchandise on account from a supplier for $8,000, terms 2/10, net 30.…
A: It is visible that there are two rows available for the 2nd entry. So the net method will be used.…
Q: Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45 on December 26.…
A: Journal Entries Sampson Company would record each transaction Journal Entries Batson Company would…
Q: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…
A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300
Q: Hell Ltd. sold merchandise for $20,000 on credit. The cost of merchandise sold was $11,900. The…
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A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…
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A: Cash discount = $22,900*2% Cash discount = $458 Sales after cash discount = $22,900 - $458 Sales…
Q: Travis Company purchased merchandise on account from a supplier for $9,400, terms 2/10, net 30.…
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A: Discount on Payment = Invoice amount x rate of discount = $3,000 x 3% = $90
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Q: a. Sampson Co. sold merchandise to Batson Co. on account, $32,20o, terms 2/15, net 45. b. The cost…
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A: Discount is a benefit offered by a seller to the buyer for the payment done within the time period…
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Q: Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulligans paid…
A: Given that: Sale value of merchandise = $10,000
Q: Sales-related transactions Sayers Co. sold merchandise on account to a customer for $86,000 terms…
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Q: Presented below are transactions related to Sheridan, Inc. Sheridan uses the periodic inventory…
A: CASH DISCOUNT IS THE DEDUCTION GIVEN BY THE SELLER OF THE GOODS OR PROVIDER OF SERVICES TO ENCOURAGE…
Q: lled at $11,500 subject to cash discount terms of 2/10, n/60. 11 Purchased goods billed at…
A: Journal entries are the initial recording of all the monetary business transactions in a…
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A: Purchases: Purchases refer to the business act of procuring the merchandise inventory. Purchase…
Q: Travis Company purchased merchandise on account from a supplier for $5,400, terms 2/10, net 30.…
A: Discount received = $5,400 x 2% = $108 Cash paid = $5,400 - $108 = $5,292
Q: ABC Co. uses the gross method for discounts of inventory purchased. ABC Co. has the following…
A: Under the gross method for a discount on inventory purchase, the inventory is recorded at full…
Q: Inventory that cost $500 is sold for $700, with terms of 2/10, n/30. Give the journal entries…
A: Discount = Amount receivable x rate of discount = $700 x 2% = $14
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $24,30o, terms 2/15, net 45. b. The cost…
A: Solution Date Particulars Debit Credit Batson Co. A/c 24,300 To Sales A/c 24,300…
Q: M&M Company purchased $3,600 of merchandise on account, terms 2/10,n/30. If payment was made after…
A: Creditors are the one who owes money from us, whether due to credit purchase, service or loan. It is…
Q: Travis Company purchased merchandise on account from a supplier for $5,700, terms 2/10, net 30.…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: Travis Company purchased merchandise on account from a supplier for $12,900, terms 2/10, net 30.…
A: Perpetual inventory system: It is a method of inventory management that records real time…
Q: nventory was determined by physical count on October 31 as P77,500. Required: Compute the…
A: solution concept In case of FOB shipping terms the goods has to be accounted for in the inventory of…
Q: Oppenheimer Company purchased merchandise on account from a supplier for $13,400, terms 1/10, n/30.…
A: Net purchases = Purchases - purchase return = $13400 - 1700 = $11,700
Q: Instructions Travis Company purchased merchandise on account from a supplier for $5,900, terms 2/10,…
A: Given purchased merchandise =$5,900 terms=2/10
Q: Travis Company purchased merchandise on account from a supplier for $12,300, terms 2/10, net 30.…
A: Cash paid = Purchase - discount Discount = Purchases x discount rate
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- Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, 1,815.24. The cost of merchandise was 1,320. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, 622. The cost of the merchandise was 485. c. Bought merchandise on account from Michals Inc., invoice no. 1685, 850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, 65.00 (total 915). d. Received credit memorandum no. 219 from Michals Inc. for merchandise returned, 210.Brown Inc. records purchases in a purchases journal and purchase returns in the general journal. Record the following transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory.Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
- On December 31, Marchant Company took a physical count of its merchandise inventory. It operates under the perpetual inventory system. The physical count amounted to 185,294. The Merchandise Inventory account shows a balance of 187,936. Journalize the adjusting entry.Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
- Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
- Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.Beginning inventory, purchases, and sales for Item Delta are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on July 24 and (b) the inventory on July 31.A retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty inventory parts. Which of the following represents the journal entry for this transaction if the retailer has already remitted payment? A. B. C.
