E7-4 (Algo) Inferring Merchandise Purchases LÖ7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,372,000 and $233,103,000, respectively. Net sales for the current year were $2,540,276,000. Cost of goods sold was $178,614,000. Income before taxes was $172,305,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases

E7-4 (Algo) Inferring Merchandise Purchases LÖ7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,372,000 and $233,103,000, respectively. Net sales for the current year were $2,540,276,000. Cost of goods sold was $178,614,000. Income before taxes was $172,305,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases

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Description: Dhapa E7-4 (Algo) Inferring Merchandise Purchases LO7-1Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stockanalyst and your boss has just completed a review of the new Harr

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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Required information [The following information applies to the questions displayed below.] The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,150. October 6 October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above sales transactions of EcoMart Merchandising to prepare journal entries. < The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise, which had cost $115, is returned to inventory. View transaction list Journal entry worksheet 1 2 Date October 01 3 Note: Enter debits before credits. Record entry 4 5 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. General Journal 6 Clear entry 7…
Required information [The following information applies to the questions displayed below] The following are the sales transactions of Kmart Merchandising. Kmart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $3,100, with credit terns n/30, invoice dated October 1. The cost of the merchandise is $1,700. October & The customer in the October 1 sale returned $310 of merchandise for full credit. The merchandise, which had cost $170, is returned to inventory. October Sold merchandise for $1,500 cash. Cost of the merchandise is $1,090. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above sales transactions of KMart Merchandising to prepare journal entries
8. Hampton Computers has the following transactions in August related to the sale of merchandise inventory. i (Click the icon to view the transactions.) Journalize the sales transactions for Hampton Computers assuming the company uses the perpetual inventory system. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Assume the company records sales at the net amount.) Aug. 12: Sold computers on account for $11,900 to a customer, terms 1/15, n/ 60. The cost of the computers is $7,140. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts and Explanation Debit Credit Aug. 12 More Info August 12 Sold computers on account for $11,900 to a customer, terms 1/15, n/60. The cost of the computers is $7,140. 26 Received payment from the customer on balance due. Choose from any list or enter any number in the input…
E7-4 Inferring Merchandise Purchases LO7-1 Abercrombie and Fitch is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Abercrombie annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Abercrombie in the current and previous years was $424,393,000 and $399,795,000, respectively. Net sales for the current year were $3,492,690,000. Cost of goods sold was $1,408,848,000. Income before taxes was $55,161,000. For your analysis, you determine that you need to know the amount of purchases for the year. Required: Can you develop the information from her notes? Explain and show calculations. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.)
Required information Skip to question [The following information applies to the questions displayed below.]The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $1,500, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $900. October 6 The customer in the October 1 sale returned $150 of merchandise for full credit. The merchandise, which had cost $90, is returned to inventory. October 9 Sold merchandise for $700 cash. Cost of the merchandise is $450. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement—specifically, identify the accounts and amounts (including + or −) for each transaction.
Bruce Bonner began a web-based computer sales and service company on August 1, 2024 called Bonner's Toys Corporation. The following information is available for August, 2024 (assume a perpetual inventory system). August 1 Purchased $8,000 of merchandise inventory from Allarco Inc.; terms 1/10, n30; FOB shipping point. 1 $16,000 of merchandise was purchased from Global Filter Corp. on account; terms 1/10, n30. 2 Received the August 1, 2024 purchase and paid cash of $200 for shipping. 2 Sold merchandise to Joey Juno that cost $3,200 for $4,000; terms 1/15, n30. 4 Paid for the merchandise purchased from Allarco Inc. on August 1, 2024. 8 The customer of August 2, 2024 returned $900 of their purchase due to defects; the returned merchandise will not be returned to inventory. 11 Collected the balance owing regarding the August 2, 2024 sale. 13 Paid for the merchandise purchased from Global Filter Corp. on August 1, 2024. 15 Sold…
es ! Required information [The following information applies to the questions displayed below.] The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $2,000, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,150. October 6 The customer in the October 1 sale returned $200 of merchandise for full credit. The merchandise, which had cost $115, is returned to inventory. October 9 Sold merchandise for $950 cash. Cost of the merchandise is $650. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement- specifically, identify the accounts and amounts (including + or -) for each transaction. Income Statement Components Sales (gross) Sales discounts Sales returns and allowances Net sales Cost…
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
еВook Show Me How Recording Purchases Dawson Enterprises uses the perpetual system to record inventory transactions. Dawson had the following transactions in April: a. On April 1, Dawson purchased merchandise on credit for $21,900 with terms 2/10, n/30. b. On April 2, Dawson purchased merchandise on credit for $23,400 with terms 3/15, n/25. c. On April 9, Dawson paid for the purchase made on April 1. d. On April 25, Dawson paid for the merchandise purchased on April 2. Required: Prepare journal entries for these four transactions. If an amount box does not require an entry, leave it blank. April 1 Inventory Accounts Payable April 2 Inventory Accounts Payable April 9 Accounts Payable Cash Inventory April 25 Accounts Payable Cash Feedback Check My Work From the buyer's perspective, the historical cost principle implies that inventory cost will include the purchase price of the inventory plus any cost of bringing the goo nondition and loontion Prew Check My Work
REQUIRED: MAKE THE JOURNAL ENTRIES USING PERIODIC INVENTORY SYSTEM WITH LITTLE EXPLANATIONS Part 1 : Jim Tenorio operates Scent Company, a perfume and soap store. During May 2002, the following transactions were completed. May 8- Sold merchandise on account to Rustans, P11,000, VAT included. Terms: 2/10, n/30. 15- Recorded cash sales for the first half of May, P30,000, plus 10% VAT. 16- Sold merchandise on account to Robinsons, P8,000 plus 10% VAT. 17- Received defective goods from Rustans, P2,200, VAT included. 18- Received a check from Rustans for the amount owed on the May 8 sale. 30- Collected in full the account of Robinsons. Part II. Diana Villanueva owns and operates the Dada Meat Mart. She opened the business on January 1, 2005 selling beef, pork chicken, canned goods and dairy products. Journalize the following transactions. June 1 Purchased beef from Yssa’s farm, P…
APPLYING THE CONCEPTS: Purchases and sales in action This is a list of purchases and sales transactions that occurred in the month of November. Correctlyjournalize these transactions below. Use Smart Entry when dropdowns are not available. Forcompound entries, if amount box does not require an entry, leave it blank. If required, round to the nearest cent. November 1 Purchased inventory on account with credit terms 2/10, n/30, $4900. November 2 Paid freight-in costs FOB shipping point, $200. November 6 Returned part of inventory purchased on 11/1 for a credit, $980. November 8 Sold inventory on credit, terms 2/10, n/30, $3600. November 10 Paid one half of the amount due for the purchase on 11/1. November 15 Accepted return of part of inventory sold on 11/8 for credit, $720. November 16 Paid the remaining balance of the amount due for the purchase on 11/1. November 17 Collected in full for the sale on 11/8.
! Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 40,300 120,300 7,000 Sales returns and allowances Cost of goods sold $ 6,000 106,500 159,200 3,400 Depreciation expense Salaries expense Miscellaneous expenses 10,800 35,000 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,900. QS 5-9 Accounting for shrinkage-perpetual system LO P3 Prepare the entry to record any inventory shrinkage. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 July 31 Merchandise inventory 38,900