1. At year-end, Barr Company had shipped $14,200 of merchandise FOB destination to Lee Company. Which company should include the $14,200 of merchandise in transit as part of its year-end inventory? 2. Parris Company has shipped $21,700 of goods to Harlow Company, and Harlow Company has arranged to sell the goods for Parris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory? Complete this question by entering your answers in the tabs below. Required 1 Required 2 At year-end, Barr Company had shipped $14,200 of merchandise FOB destination to Lee Company. Which company shoul the $14,200 of merchandise in transit as part of its year-end inventory? Vhich company should include the $14,200 of merchandise in transit as part of its year-end inventory?

1. At year-end, Barr Company had shipped $14,200 of merchandise FOB destination to Lee Company. Which company should include the $14,200 of merchandise in transit as part of its year-end inventory? 2. Parris Company has shipped $21,700 of goods to Harlow Company, and Harlow Company has arranged to sell the goods for Parris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory? Complete this question by entering your answers in the tabs below. Required 1 Required 2 At year-end, Barr Company had shipped $14,200 of merchandise FOB destination to Lee Company. Which company shoul the $14,200 of merchandise in transit as part of its year-end inventory? Vhich company should include the $14,200 of merchandise in transit as part of its year-end inventory?

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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The following summarizes Tesla’s merchandising activities for the year. Set up T-accounts for Merchandise Inventory and for Cost of Goods Sold. Enter each line item into one of the two T-accounts and compute the T-account balances. Cost of merchandise sold to customers . $196,000 Merchandise inventory, beginning-year . 25,000 Cost of merchandise purchases, gross amount . 192,500 Shrinkage on merchandise as of year-end . 800 Cost of transportation-in for merchandise purchases . 2,900 Cost of merchandise returned by customers and restored to inventory 2,100 Discounts received from suppliers on merchandise purchases 1,700 Returns to and allowances from suppliers on merchandise purchases . 4,000
The following selected transactions were completed by Betz Company during July of the current year: July 1 Purchased merchandise from Sabol Imports Co., $13,322, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. 5 Purchased merchandise from Schnee Co., $13,700, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,850 returned from purchase on July 5. 13 Paid Saxon Co. for invoice of July 3. 14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6. 19 Purchased merchandise from Southmont Co., $29,840, terms FOB shipping point, n/eom. 19 Paid freight of $410 on July 19 purchase from Southmont Co. 20 Purchased merchandise from Stevens Co., $22,200, terms FOB destination, 1/10, n/30. 30 Paid Stevens Co. for invoice of July 20. 31 Paid Sabol Imports Co. for…
1. At year-end, Barr Company had shipped $12,500 of merchandise FOB destination to Lee Company. Which company should include the $12,500 of merchandise in transit as part of its year-end inventory? 2. Parris Company has shipped $20,000 of goods to Harlow Company, and Harlow Company has arranged to sell the goods for Parris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory? Complete this questlon by entering your answers in the tabs below. Required 1 Required 2 Parris Company has shipped $20,000 of goods to Harlow Company, and Harlow Company has arranged to sell the goods for Parris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory? Identify the consignor. Identify the consignee. Which company should include any unsold goods as part of its inventory? < Required 1
Hunter Co. is a calendar-year retailer. Its year-end physical count of inventory on hand did not consider the effects of the following transactions: Goods with a cost of P50,000 were shipped by Hunter FOB shipping point on December 30 and were tendered to and accepted by the buyer on January 4. Goods with a cost of P40,000 were shipped FOB destination by a vendor on December 30 and were tendered to and accepted by Hunter on January 4. Goods were sold on the installment basis by Hunter. Installment receivables representing sales of goods with a cost of P30,000 were reported at year-end. Hunter retains title to such goods until full payment is made. Goods with a cost of P20,000 were held on consignment for a vendor. These goods were excluded from the count although they were sold in January. If inventory based solely on the physical count of items on hand equaled P1 million. Hunter should report inventory at year-end of ____________
Kelly Corporation shipped goods to a customer f.o.b. destination on December 29, 2018. The goods arrived atthe customer’s location in January. In addition, one of Kelly’s major suppliers shipped goods to Kelly f.o.b. shipping point on December 30. The merchandise arrived at Kelly’s location in January. Which shipments should beincluded in Kelly’s December 31 inventory?
Presented below are selected transactions for Blue Spruce Company during September and October of the current year. Blue Spruce uses a perpetual inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $46,000, 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 $2,280 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $109,300, terms 2/10, n/30, FOB destination. 16 The correct company paid $2,100 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,700 for returned goods. These goods had cost Blue Spruce Company $2,280 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale. 30 Paid Hillary Company the…
Can you please explain how to get the Cost of Goods Solds category using LIFO?
5. On December 31, 2020, XYZ's fiscal year end, a physical count of inventory revealed an inventory balance of $80,000. The following items were not yet included in the physical count: i. ii. iii. Merchandise shipped to a customer on 12/28 FOB destination (merchandise arrives at customer's location on 1/5/21) $3,000 Merchandise shipped to a customer on 12/29 FOB shipping point (merchandise arrives at customer's location on 1/2/21) $1,500 Merchandise purchased from a supplier, shipped FOB destination on 12/26, arrives on January 4, 2021 $6,000. Barrington's 2016 ending inventory should be: a. $80,000. b. $89,000. c. $83,000. d. $87,750.
Questions # 21-23 are based on the information below: Wicker Inc. has the following transactions during March: March 3 March 5 March 6 March 12 March 29 Purchases inventory on account for $3,500, terms 2/10, n/30. Pays freight costs of $200 on inventory purchased on March 3. Returns inventory with a cost of $500. A. $60 B. $70 C. $56 D. $84 Pays the full amount due to supplier. Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account. 21. On March 12, how much is the purchase discount? 22. How much cash does Wicker pay to the supplier on March 12? A. $2,936 B. $2,930 C. $2,940 D. $3,000 23. How much will Wicker record as cost of goods sold on March 30? A. $5,000 B. $3,000 C. $3,200 D. $3,140
37. EX.07.91Logan Company has provided the following information:(1) Included in the physical count were inventory items billed to a customer FOB shipping point on December 31,2019. The goods had a cost of $280 and had been billed at $400. The shipment was on Logan's loading dock waitingto be picked up by the trucking company.(2) Goods returned by customers and held pending inspection in the returned goods area on December 31, 2019,were not included in the physical count. On January 5, 2020, the goods costing $260 were inspected and returned toinventory. Credit memos totaling $380 were issued to the customers on the same date.(3) On January 3, 2020, a monthly freight bill in the amount of $170 was received. The bill specifically related tomerchandise purchased in December 2019, 30% of which was still in inventory at December 31, 2020. The freightcharges had not been recorded at December 31, 2019.(4) Goods were shipped out on consignment on December 15, 2019, and were recorded as a sale…
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,322, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. 4 Purchased merchandise from Taco Co., $13,700, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $4,850 of merchandise returned from purchase on October 4. 13 Paid Hoagie Co. for invoice of October 3. 14 Paid Taco Co. for invoice of October 4 less debit memo of October 6. 19 Purchased merchandise from Veggie Co., $29,840, terms FOB shipping point, n/eom. 19 Paid freight of $410 on October 19 purchase from Veggie Co. 20 Purchased merchandise from Caesar Salad Co., $22,200, terms FOB destination, 1/10, n/30. 30 Paid Caesar Salad Co. for invoice of October 20. 31 Paid UK Imports Co. for invoice of…
Imar Corporation sells sacks of cement. The inventory data presents the following information: At what amount should Imar Corporation report as Cost of Goods Sold under the periodic and perpetual system of FIFO method?