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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Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100 study table at a cost of OMR 70 each under the terms of 3/20 n/60 on 1st March 2019. Golden Furniture discovers that 40 study table are office table. Therefore the business returns to the supplier for a full refund on 12th March 2019. Which of the following double entry will be correct assuming that the business paid to the supplier on 31st March 2019? a. Debit : Accounts payable RO 4200 Credit: Cash RO 4200 b. Debit : Accounts payable RO 4200 Credit: Cash RO 4074 Credit Purchase discount RO 126 c. Debit : Merchandise inventory RO 7000 Credit: Accounts payable RO 7000 d. Debit : Accounts payable RO 2800 Credit: Merchandise inventory RO 2800
Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.Dec. 3.Cullumber Company sold merchandise to Ivanhoe Co. for $41,000, terms 2/10, n/30, FOB destination. This merchandise cost Cullumber Company $18,000.4.The correct company paid freight charges of $850.8.Ivanhoe Co. returned unwanted merchandise to Cullumber. The returned merchandise had a sale price of $2,300 and a cost of $990. It was restored to inventory.13.Cullumber Company received the balance due from Ivanhoe Co.(a)Prepare the journal entries to record these transactions on the books of Cullumber Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)DateAccount Titles and ExplanationDebitCredit(To record sales on…
Slinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms of 2/10, 1/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Complete this question by entering your answers in the tabs below. Req 1 Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Req 2 and 3 View transaction list Journal entry worksheet
Monomaniacs Inc. makes use of a perpetual inventory system for the goods it sells. During January 2021, the following transactions took place: Date January 2 January 5 January 9 January 18 January 24 January 30 Type of Transaction Beginning Inventory Purchase Sale Purchase Sale Purchase Number of Units 60 52 55 50 56 57 Amount Per Unit $55.00 $56.00 $105.00 $57.00 $105.00 $58.00 Required: Use the information above to produce a 9-column perpetual inventory. schedule of merchandise activity in January, 2022. When complete, circle or highlight the ending inventory, as well as the cost of goods sold for each of the two tables you will complete, based on the following perpetual methods: a) LIFO b) Moving Average
Assume that Telca Co. uses perpetual inventory system. The following are the transactions that occurred. Journalize Purchased merchandise amounting to 9, 000 from Racer Company with terms 3/10, net/30 on March 6. > Paid freight on purchase from Racer Company with an amount 500 on March 7. > Returned merchandise to Racer Company 2,000 on March 9. > Paid Racer Company in full on March 16. > On March 25, Telca Co. sold merchandise purchased from Racer Company, which cost 1,700 to a customer on account at a gross profit of 15%.
Nizwa Business Solution (NBS) follows perpetual inventory method. NBS purchase Merchandise 100 units of 3-in-1 desktop Printers at a cost of RO 70 each on credit on 10th March 2019. Terms of purchase are 2/20, n/30. NBS discovers that 40 units of the printer are 4-in-1 printer and returns to the supplier for a full refund on 12th March 2019. Which of the following is the correct entry for Merchandise Return on 12th March 2019 in the books of NBS? a. Dr. Accounts payable RO 2,800 Cr. Purchase return RO 2,800 b. Dr. Merchandise inventory RO 7,000 Cr. Accounts payable RO 7,000 c. Dr. Accounts payable RO 2,800 Cr. Merchandise Inventory RO 2,800 d. Dr. Accounts payable RO 7,000 Cr. Merchandise Inventory RO 7,000
On March 24, 2021, blue Company purchased merchandise with an invoice price of 48,000 and terms of 3/10, n/30 from red Company.blue Company is using the periodic inventory system and applying the net method in recording merchandise transactions. blue pays redhalf of the invoice price on March 31, 2021 and the remaining half on April 15, 2021.1. What is the journal entry in the books of blue on March 24, 2021?2. What is the journal entry in the books of blue on April 15, 2021??
As of January 1, 2020, Sandhill Inc. adopted the retail method of accounting for its merchandise inventory. To prepare the store's financial statements at June 30, 2020, you obtain the following data. Inventory, January 1 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchase returns Sales returns and allowances (a) Cost $28,100 94,560 2,900 Selling Price $43,500 11,000 9,200 6,000 3,000 153,800 154,200 3,900 7,500 Compute Sandhill's June 30, 2020, inventory under the conventional retail method of accounting for inventories. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answer to O decimal places, e.g. 28,987.) Inventory under the conventional retail method $
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
Whispering industries purchased $8,100 of merchandise on february 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. it returned $2,100 ( gross price before trade or cash discount) on february 4. the invoice was paid on february 13
On July 1, Hernandez, Inc. purchased merchandise for $2,500, with terms of 1/10, n/30. On July 5, the firm returned $1 ,000 of the merchandise to the seller. Payment of the account occurred on July 8. Hernandez uses the perpetual inventory system. a. Prepare the journal entries for July 1, July 5, and July 8. b. Assuming that the account was paid on July 14, prepare the journal entry for payment on that date.

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