Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the year-end inventory count.
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Uptown Co. took a physical count of its inventory at year-end. In addition, it had to decide whether or not the following items should be added to this count.
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(a) |
Merchandise on hand had been sold but returned by customers for warranty work._______ |
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(b) |
Uptown Co. sent merchandise out on a consignment basis just prior to the physical count.__ |
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(c) |
Before year-end the company ordered merchandise on FOB destination. The merchandise was shipped by the supplier but had not been received at year-end.--------______ |
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(d) |
Before year-end the company ordered merchandise on FOB shipping point terms. The merchandise was shipped the same day but had not been received._____ |
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(e) |
Merchandise sold FOB shipping point at year-end was picked up by the freight co._____ |
Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the year-end inventory count.
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- Under the periodic inventory system, what account is credited when an estimate is made for sales made this year, but expected to be returned next year? (a) Merchandise Inventory (b) Customer Refunds Payable (c) Sales (d) Sales Returns and AllowancesUnder the periodic inventory system, what account is debited when an estimate is made for the cost of merchandise inventory sold this year, but expected to be returned next year? (a) Estimated Returns Inventory (b) Sales Returns and Allowances (c) Merchandise Inventory (d) Customer Refunds PayableHampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count. (a) Merchandise on hand had been sold earlier in the year but had been returned by customers for various warranty repairs. (b) Hampton Co. sent merchandise on a consignment basis on December 31 just prior to the physical count. (c) On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31. (d) On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31. (e) Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31. (f) Merchandise shipped to a customer FOB shipping point was picked up by the freight company on December 28 but had…
- The following purchase transactions occurred during the last few days of Yellow Orange Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. 1. An invoice for P30,000, terms fob shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipts of goods on November 3. 2. An invoice for P27,000, terms fob destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. 3. An invoice for P31,500, terms fob shipping point, was received October 15 but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation:" Merchandise not of same quality as ordered returned for credit October 19." 4. An invoice for P36,000, terms fob shipping point, was received and entered…When using perpetual inventory system, which of the entry or entries correctly record(s) the return of merchandise by a cash customer on Jan. 15 that was sold the previous year? The selling price of the returned merchandise was $6,000 and the merchandise originally cost $4,200. The customer was given a cash refund.On December 29 of the current year, Sabre Company sold merchandise for $4, 000 on credit terms, 3/10, n/60. Its accounting period ends December 31. Required Provide the following entries under the gross method. a. To record the merchandise sale. Omit the cost of goods sold entry. b. To record collection of the account, assuming collection took place on January 5 of next year. c. To record collection of the account, assuming collection took place on February 15 of next year. Note: If a line in a journal entry isn't required for a transaction, select "N/A" as the account name and leave the Dr. or Cr. answer blank (zero). 0
- The following purchase transactions occurred during the last few days of Whilczel Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. · An invoice for P6,000, terms FOB shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipt of goods on November 3. · An invoice for P2,700, terms FOB destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. · An invoice for P3,150, terms, FOB shipping point, was received October 15, but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation: "Merchandise not of the same quality as ordered - returned for credit October 19". · An invoice for P3,600 terms FOB shipping…The following purchase transactions occurred during the last few days of Whilczel Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. · An invoice for P6,000, terms FOB shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipt of goods on November 3. · An invoice for P2,700, terms FOB destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. · An invoice for P3,150, terms, FOB shipping point, was received October 15, but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation: "Merchandise not of the same quality as ordered - returned for credit October 19". · An invoice for P3,600 terms FOB shipping…The following purchase transactions occurred during the last few days of Whilczel Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. · An invoice for P6,000, terms FOB shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipt of goods on November 3. · An invoice for P2,700, terms FOB destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. · An invoice for P3,150, terms, FOB shipping point, was received October 15, but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation: "Merchandise not of the same quality as ordered - returned for credit October 19". · An invoice for P3,600 terms FOB shipping…
- Palisade Creek Co. is a merchandising business that uses the perpetual inventory system.The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed:May 1. Paid rent for May, $5,000.3. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.4. Paid freight on purchase of May 3, $600.6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.7. Received $22,300 cash from Halstad Co. on account.10. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.13. Paid for merchandise purchased on May 3.15. Paid advertising expense for last half of May, $11,000.16. Received cash from sale of May 6.19. Purchased merchandise for cash, $18,700.19. Paid $33,450 to Buttons Co. on account.20. Paid Korman Co. a cash refund…a ccompany purchased $1,800 of merchandise on July 5, with terms 2/10, n/30. On july 7. it returned $200 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system,and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:All sales and purchases for the year at Ross Corporation are credit transactions. Ross uses a perpetual inventory system. During the year, it shipped certain goods that were correctly excluded from ending inventory although the sale was not recorded. Which one of the following statements is correct? a. Accounts receivable was not affected, inventory was not affected, sales were understated, and cost of goods sold was understated. b. Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was understated. c. Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated. d. Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was not affected.