24. A firm starts the month with 1,000 units in inventory at a cost of $12 per unit. They have the following transactions during the month of January 1/14/23: Purchase 500 units on account at a cost of $13 per unit, terms 2/10, n/30 1/20/23: Sell goods costing $100 for $140, cash. 1/22/23: Pay for purchase made on 1/14/23 1/27/23: Customers from 1/20/23 returned some merchandise. Gave $14 refund, and put goods costing $10 back in inventory. Required: Prepare entries to record the above transactions assuming the firm uses the PERPETUAL inventory method

24. A firm starts the month with 1,000 units in inventory at a cost of $12 per unit. They have the following transactions during the month of January 1/14/23: Purchase 500 units on account at a cost of $13 per unit, terms 2/10, n/30 1/20/23: Sell goods costing $100 for $140, cash. 1/22/23: Pay for purchase made on 1/14/23 1/27/23: Customers from 1/20/23 returned some merchandise. Gave $14 refund, and put goods costing $10 back in inventory. Required: Prepare entries to record the above transactions assuming the firm uses the PERPETUAL inventory method

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 5P: A chain of appliance stores, APP Corporation, purchases inventory with a net price of 500,000 each...

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Question

24. A firm starts the month with 1,000 units in inventory at a cost of $12 per unit.
They have the following transactions during the month of January
1/14/23: Purchase 500 units on account at a cost of $13 per unit, terms 2/10, n/30
1/20/23: Sell goods costing $100 for $140, cash.
1/22/23: Pay for purchase made on 1/14/23
1/27/23: Customers from 1/20/23 returned some merchandise. Gave $14 refund, and put goods
costing $10 back in inventory.
Required: Prepare entries to record the above transactions assuming the firm uses the
PERPETUAL inventory method

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