DATE Sept. 7 10 16 20 23 Apex Office Machines, Inc. Brown Paper Company Dalton Office Furniture Company Davis Corporation Zenn Furniture, Inc. 28 Name 30 TRANSACTIONS Creditors 3 Purchased desks for $8,020 plus a freight charge of $222 from Dalton Office Furniture Company, Invoice 4213, dated August 29; the terms are 30 days net. Accounting for Purchases and Accounts Payable Terms n/60 1/10, n/30 n/30 n/30 2/10, n/30 Balance $11,060 2,220 9,676 5,400 Purchased computers for $12,300 from Apex Office Machines, Inc., Invoice 9217, dated September 2, net due and payable in 60 days. Received Credit Memorandum 511 for $700 from Dalton Office Furniture Company; the amount is an allowance for damaged but usable desks purchased on Invoice 4213, dated August 29. Purchased file cabinets for $2,656 plus a freight charge of $134 from Davis Corporation, Invoice 8066, dated September 11; the terms are 30 days net. Purchased electronic desk calculators for $1,100 from Apex Office Machines, Inc., Invoice 11011, dated September 15, net due and payable in 60 days. Purchased bond paper and copy machine paper for $8,500 plus a freight charge of $100 from Brown Paper Company, Invoice 6498, dated September 18; the terms are 1/10, n/30. Received Credit Memorandum 312 for $980 from Apex Office Machines, Inc., for defective calculators that were returned; the calculators were originally purchased on Invoice 11011, dated September 15. Purchased office chairs for $3,940 plus a freight charge of $170 from Zenn Furniture, Inc., Invoice 696, dated September 25; the terms are 2/10, n/30. Analyze: What total amount was recorded for purchases returns and allowances in the month of September? What percentage of total purchases does this represent?

LIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction Per Unit Total of Units Apr. 3 Inventory 36 $225 $8,100 8 Purchase 72 270 19,440 11 Sale 48 00 750 36,000 30 Sale 30 750 22,500 May 8 Purchase 60 60 300 18,000 10 Sale 36 750 27,000 19 Sale 18 750 13,500 28 Purchase 60 330 19,800 June 5 Sale 36 790 28,440 16 Sale 48 790 37,920 21 Purchase 108 360 38,880 28 Sale 54 790 42,660 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

35 Which inventory issue must be disclosed in the notes to financial statements? Price changes for customers Suppliers' net assets Average costs of inventory Transactions with related parties BOOKMARK

Using the accounts and amounts below, calculate Net Sales: Account Amount Sales Revenue $142,055 Purchase Discounts 1,886 Sales Discounts Sales Returns and Allowances 2,881 2,515 Cost of Goods Sold 40,889

Ch. 12-16 1 The cost of goods sold reflects the selling price of the merchandise sold over a period of time. True or False True False

Match the.last day the discount may be taken to each letter Invoice Date Date Merchandise was Last Date Received Terms for Cash Discount a. September 28 October 4 8/10 EOM b. July 28 August 2 8/10 ROG C. January 22 January 27 2/10 EOM d. March 21 March 27 2/10 ROG е. May 30 June 6 1/15, n/30 f. September 14 September 17 3/10,n/30