FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Pets Unlimited sells pet supplies to retailers. The company uses a perpetual inventory. Journalize the following transactions for the company: June 1 Sold merchandise for $6,250 with terms 2/10, n/30. Inventory cost was $5,000. 5 Sold merchandise for $10,000 with terms 3/10, n/30. Inventory cost was $6,000. 11 Received a check from the customer paying the balance due within the discount period.arrow_forwardDescribed below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Martinez Company for $73,500 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $55,000 from Blossom Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $86,000 from Chicago National Bank by signing a $94,640 zero interest bearing note due 1 year from May 1. (a) Your answer is correct. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered.…arrow_forwardSandhill Wholesalers uses a perpetual inventory system.March. 1. Stellar Stores purchases $8,900 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB shipping point.2. The correct company pays $150 for the shipping charges.3. Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Sandhill gives Stellar a $1,000 credit on its account.21.Stellar Stores purchases an additional $12,500 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB destination.22.The correct company pays $195 for freight charges.23.Stellar returns $450 of the merchandise purchased on March 21 because it was damaged. Sandhill gives Stellar a $450 credit on its account.30.Stellar paid Sandhill the amount owing for the merchandise purchased on March 1.31.Stellar paid Sandhill the amount owing for the merchandise purchased on March 21. Additional information: March.1. Sandhill's cost of the merchandise sold to Stellar was $4,100.3.…arrow_forward
- What is The inventory, turnover ratio and days to sell inventory ratio? (a) Larkspur Hands Ltd. is a retailer specializing in hand care products. The company donates twenty percent of its profits to local charities. Larkspur Hands uses the periodic inventory system and the following limited information relates to Larkspur Hands Ltd. `s inventory transactions during the month of May: Units sold were priced at $63.00. Calculate Larkspur Hands' cost of goods sold, gross margin, and ending inventory for the month of May using FIFO. Cost of goods sold $ Gross margin $ Ending inventory $arrow_forward10) The company recorded cash sales for an additional 12) 20 pairs of shoes for $65 each on the 24th of the month. 11) On the last day of the month, the company estimated sales returns for their sales. They estimate that 2% of sales will be returned. (Hint: use total sales from above) Prepare the appropriate journal entries for each transaction under a perpetual inventory system.arrow_forwardOn March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms 2/10, n30. The cost of the items sold is $4,500. Klein uses PERPETUAL inventory system and the GROSS METHOD of accounting for sales. Babson pays the invoice on March 17th and takes the appropriate discount. What is the journal entry Klein makes on March 17th?arrow_forward
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