3) Abe's Printing Supply Company uses a perpetual inventory system. The company had the followingtransactions during August 2019:Aug. 5: Purchased $2,900 of merchandise on account, Freight and credit terms were FOB shipping point, 3/15,n/60.Aug. 9: Paid transportation costs of $440 for the Aug. 5 purchase.Aug. 10: Returned $600 of defective merchandise that had been purchased on Aug. 5.Aug. 15: Paid for the merchandise purchased on Aug. 5.Prepare journal entries for August 10 and 15. Omit explanations.

Perpetual inventory system is the one which records the inventory item transactions on a regular…

Answered: 3) Abe's Printing Supply Company uses a…

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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Al Bushra LLC accounting records shows the following for the year ending on 31 December 2019, Purchase Discounts RO 5,600, Purchases RO 300,000, Ending Inventory (Counted) RO 28,800, Purchase Returns 6,400. The value of Cost of goods sold assuming that the business does not have any beginning merchandise inventory a. RO 316,800 b. RO 265,600 c. RO 288,000 d. RO 259,200
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Cheese Factory uses a perpetual inventory system. The following activities occurred during May: • May 2 - Cheese Factory purchased $45,000 worth of inventory, on credit terms 3/10 n/30. . May 5 - Cheese Factory returned $5,000 worth of that inventory to the supplier. • May 9 - Cheese Factory paid for the inventory, taking advantage of all available discounts. Required: Prepare the journal entries to record the transactions above using the gross method. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, put your name below the table on the document, save the document and then upload it to this problem in the upload space provided at the bottom of this box.
Presented below are selected transactions for Flounder Company during September and October of the current year. Flounder uses a periodic inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $49,000, 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 $2,240 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $116,900, terms 2/10, n/30, FOB destination. 16 The correct company paid $2,500 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,600 for returned goods. These goods had cost Flounder Company $3,000 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale. 30 Paid Hillary Company the balance…
Prepare the journal entries to record the following purchase transactions in Blossom Company’s books. Blossom uses a perpetual inventory system. Mar. 12 Blossom purchased $23,000 of merchandise from Dalibor Company, terms 2/10, n/30, FOB destination. 13 The correct company paid freight costs of $175. 14 Blossom returned $2,700 of the merchandise purchased on March 12 because it was damaged. 21 Blossom paid the balance owing to Dalibor.
Morton Company uses a perpetual inventory system. On December 1, 2019, the company purchased inventory on account for $9,000. The credit terms are 2/10, n/30. If Morton pays the bill on Decermber 29, 2019, what amount of discount will be taken?
a. Differentiate between periodic inventory system and perpetual inventory system from an accounting point of view.b. Amanda Wholesale Company purchases merchandise from a variety of manufactures andsells the merchandise to a variety of retailers. The following transactions occurred duringFebruary 2020:Feb. 2. Purchased $7,600 of merchandise from Zenith manufacturing; terms are1/10, n/30.5. Paid $270 freight on February 2 purchase.11. Paid Zenith for the February 2 purchase.13. Purchased $5,000 of merchandise of Forbes Manufacturing; terms are 2/10, n/4.16. Received a $300 allowance (purchases return) for returned items on the February 13 purchase since some of the merchandise was the wrong size.17. Purchased $4,200 of merchandise from Toddler industries; terms are 2/10, n/3020. Sold merchandise with a list price of $4,000 ($2,200 cost) to valley mart.22. Valley mart returned 20% of the merchandise from the February 20 sales.23. Paid Forbes manufacturing for the February 13…
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14) Ibri traders returned goods to Muscat mart, a supplier of RO 1,700, purchased on 8th May,2019. The payment is received with the discount of 3% from the supplier. How would you record this in the books of buyer under the Perpetual inventory system? a. Cash RO 1,649 Dr / Account payable RO 1,649 Cr b. Cash RO 1,649 Dr / Merchandise inventory RO 1,649 Cr c. Account payable RO 1,649 Dr / Merchandise inventory RO 1,649 Cr d. Cash RO 1,700 Dr / Account receivable RO 1,700 Cr
Journalize the following transactions for Armour Inc. Oct. 7 Sold merchandise on credit to Rondo Distributors, for $1,200, terms n/30. The cost of the merchandise was $720. Purchased merchandise, $10,000, terms FOB shipping point, 2/15, n/30, with prepaid freight charges of $525 added to the invoice. Journalize the transactions above using the periodic inventory system. If an amount box does not require an entry, leave it blank. Oct. 7 Oct. 8 Journalize the transactions above using the perpetual inventory system. Oct. 7- Sale Cost Oct. 8
On March 1, 2021 Lane Tech Merchandising (LTM) purchased the following inventory in the amount of $12,500 paying $4,500 cash and the rest on account. On March 5, 2021 LTM paid the balance of the transaction of March 1, 2021. On March 10, LTM sold merchandise for $10,000 cash. The cost of merchandise sold was $7,590. Record the journal entries to record the ongoing transactions under perpetual inventory system
Travis Company purchased merchandise on account from a supplier for $12,300, 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. If an amount box does not require an entry, leave it blank. a. b.

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