1. CTH recorded the following events involving a recent purchase of merchandise: received goods for P30,000, terms 2/10, n/30; returned P600 of the shipment on credit; paid P150 freight on shipment; paid the invoice within the discount period. As a result of these events, the company's inventory A. increased by P28,812 B. increased by P29,550 C. increased by P28,959 D. increased by P28,962

1. CTH recorded the following events involving a recent purchase of merchandise: received goods for P30,000, terms 2/10, n/30; returned P600 of the shipment on credit; paid P150 freight on shipment; paid the invoice within the discount period. As a result of these events, the company's inventory A. increased by P28,812 B. increased by P29,550 C. increased by P28,959 D. increased by P28,962

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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Hayes Company had the following account balances at the end of the year: Beginning Inventory O Ending Inventory 0 Freight-In General and Administrative Expenses Interest Revenue Interest Expense Purchase Discounts Gross Profit: Net Income: X $ 97,400 $ 46,700 $ 39,400 S 41,400 3,300 25,000 2,350 1,010 5,100 0 Purchases Returns and Allowances Purchases Required: Compute the following: 1. Gross profit 2. Net income, given that income from operations is $54,400. Sales Discounts Sales Returns and Allowances Sales Selling Expenses $ 5900 86800 7300 6500 196000 25700
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Sunland's Market recorded the following events involving a recent purchase of inventory: Received goods for $121000, terms 2/15, n/30. Returned $2900 of the shipment for credit. Paid $700 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $116438. increased by $115738. increased by $118800. increased by $116424.
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On September 1, Dayne Ltd. purchased $9,500 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $200. Payment for the purchase was made on September 18. Assuming Dayne Ltd. uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as accounts payable from this purchase? Select one: a. $9,500. O b. $9,605. O c. $9,405. O d. $9,700.
Assume the perpetual inventory method is used. • The company purchased $13,700 of merchandise on account under terms 3/10, n/30. • The company returned $3,200 of merchandise to the supplier before payment was made. • The liability was paid within the discount period. . All of the merchandise purchased was sold for $21,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice O Assets and liabilities are decreased by $3,104. Assets and liabilities are decreased by $3,200. None. It is an asset exchange transaction. Assets and stockholders' equity are decreased by $3,200. Help
Viet Stores recorded the following events involving a recent purchase of merchandise: Received goods for $60,000, terms 2/10, n/30. Returned $1,200 of the shipment for credit. Paid $300 freight on the shipment. Paid the invoice within the discount period. ● As a combined result of these events, the company's inventory: Select one: A. Increased by $57,624 B. Increased by $57,900 C. Increased by $57,918 D. Increased by $57,924
An invoice received included the following information: merchandise price, $3,200; terms 1/10, n/eom; FOB shipping point with prepaid freight of $598. Assuming that a credit for merchandise returned of $600 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $600 b. $3,760 c. $3,200 d. $3,172
PISCES Company provided the following information for this year: Merchandise purchased for resale P5,500,000; Freight out 40,000; Freight in 70,000; Purchase Returns P80,000 and Interest on inventory loan P 25,000. What amount should be reported as inventoriable cost of the purchase?
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The following information applies to the Grady Company for the current year: Purchases of merchandise for resale $300,000 Merchandise returned to vendor 3,000 Interest on notes payable to vendors Freight-in on merchandise 6,000 7,500 Grady's inventory costs for the year would be: a. $297,000 b. $300,000 c. $304,500 d. $316,500