2. Cedarbrae Art Sales uses the perpetual inventory system. On September 30, 2014, the company's year-end, a physical count was taken of theinventory on hand. The cost of the inventory on hand was determined to be $412500. However, the accountant has questions about the followingitems:1.On the store shelves, the staff counted 7 paintings held by Cedarbrae on consignment from a local artist. The paintings are included on the inventorycount at a cost of $4,200.On September 30, a shipment of goods was sent to a customer FOB destination. The cost of the goods shipped is $7,800, and freight, which is to bepaid by Cedarbrae, will cost $200. These items are not included in the inventory count.2.On October 2, a freight company delivered goods that cost $10,000 to Cedarbrae's warehouse. The goods had been shipped by the vendor onSeptember 29, FOB shipping point. Freight on this shipment will amount to $500 and will be paid by the appropriate party. The goods are not includedon the inventory count.On September 30 a loyal customer visited Cedarbrae's retail shop and asked that certain items be set aside for him. The goods set aside have a cost of$1,300. The customer intends to let Cedarbrae know no later than October 2 whether or not he wishes to finalize the sale and have the goods shipped tohis home. The freight will cost $50 and will be paid by Cedarbrae. The sales person was fairly sure the customer will take the items; and so prepared thesales invoice on September 30. The items are not included on the inventory count.3.4.Residing in Cedarbrae's warehouse is merchandise costing $5,000 that was purchased in September and found to be defective. Cedarbrae's purchasingmanager has arranged with the vendor to accept return of the goods and has packaged them for return shipment. The vendor processed a credit toCedarbrae's account on September 28, and arranged to have the goods picked up on October 1. The items are included on the inventory count.5.InstructionsCalculate the correct inventory balance at September 30, 2014 Using the table below, enter the number to add to inventory, 0 if not included orbrackets with the number to deduct.DeterminedBalanceCorrectBalance# 1#2# 3# 4#5$412500排

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Description: 2. Cedarbrae Art Sales uses the perpetual inventory system. On September 30, 2014, the company's year-end, a physical count was taken of theinventory on hand. The cost of the inventory on hand was determined to be $412500. However, the accountant ha

In the FOB Destination, the Seller will assume all risks and cost associated with the goods till it…

Business

Accounting

Instructions Calculate the correct inventory balance at September 30, 2014 Using the table below, enter the number to add to inventory, 0 if not included or brackets with the number to deduct. Determined Balance Correct Balance #1 # 2 # 3 # 4 # 5 S412500

Instructions Calculate the correct inventory balance at September 30, 2014 Using the table below, enter the number to add to inventory, 0 if not included or brackets with the number to deduct. Determined Balance Correct Balance #1 # 2 # 3 # 4 # 5 S412500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019. M7-6 The cost of the inventory on January 31, 2019, under the FIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200 M7-7 The cost of the inventory on January 31, 2019, under the LIFO method is: a. 400 b. 2,700 c. 3,100 d. 3,200
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Cheese Factory uses a perpetual inventory system. The following activities occurred during May: • May 2 - Cheese Factory purchased $45,000 worth of inventory, on credit terms 3/10 n/30. . May 5 - Cheese Factory returned $5,000 worth of that inventory to the supplier. • May 9 - Cheese Factory paid for the inventory, taking advantage of all available discounts. Required: Prepare the journal entries to record the transactions above using the gross method. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, put your name below the table on the document, save the document and then upload it to this problem in the upload space provided at the bottom of this box.
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Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of $268,000. Purchases of merchandise on account during the year totaled $850,000. Merchandise costing $903,000 was sold on account for $1,430,000. Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list Journal entry worksheet < 1 2 3 Record the merchandise purchased on account for $850,000. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
What is the Correct December 31 inventory amount ?? Bramble Company just took its physical inventory. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $280,000. In reviewing the details of the count and related inventory transactions, you have discovered the following. 1. Bramble has sent inventory costing $26,000 on consignment to Alissa Company. All of this inventory was at Alissa’s showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory.
can you please check to see if i did the journal entries correctly? The following inventory transactions occurred at Zapata, Inc., which uses a perpetual inventory system: October 2 Purchased 50 units of inventory from a supplier on credit. The goods cost $30 each and the credit terms were 2/10, n/30. The shipping costs were $100 under the terms FOB destination and Zapata received the inventory on October 3rd. October 4 Returned 5 units of inventory from the October 2nd transaction to the supplier. October 6 Sold 15 of the units purchased on October 2nd for $50 each to customers for cash. October 7 October 10 Accepted a return of one unit of inventory from an October 6th customer for a cash refund. Established a petty cash fund for $300. October 11 October 15 October 28 Paid the supplier for one-half of the inventory purchased on October 2nd, net of any returns. Used $20 out of petty cash to pay for stamps (postage expense). Purchased 10 units of…
On June 5, Staley Electronics purchases 200 units of inventory on account for $20 each. After closer examination, Staley determines 40 units are defective and returns them to its supplier for full credit on June 9. All remaining inventory is sold on account on June 16 for $35 each. Required: Record transactions for the purchase, return, and sale of inventory using a perpetual system.
Patricia Flynn owns a business called Patty's Place. The company uses a periodic inventory system. The beginning inventory balance was $31,000. A physical count determined her ending inventory was $25,000. Based on past experience, Patricia estimates that $3,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $900. Which of the following journal entries would record the ending inventory? a.Debit Income Summary for $25,000 and credit Merchandise Inventory for $25,000 b.Debit Income Summary for $6,000 and credit Merchandise Inventory for $6,000 c.Debit Merchandise Inventory for $6,000 and credit Cost of Goods Sold for $6,000 d.Debit Merchandise Inventory for $25,000 and credit Income Summary for $25,000
Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance of $250,000, but a physical count shows that the merchandise on hand has a cost of only$246,000.a. Explain the probable reason(s) for this discrepancy.b. Prepare the journal entry required in this situation.c. Indicate all the accounting records to which your journal entry in part b should be posted.