Perth Emporium is a gift shop situated in a small fishing village. The business carries a range of merchandise that it accounts for under the perpetual method. Cost is assigned using the FIFO cost formula. All purchases are on FOB shipping terms, with 30 days credit. The end of the reporting period is 30 June. The following information lists the transactions during October 2019 for one item of inventories (wall plaques): Date Detail Oct. 1 4 8 Sale 11 Purchase Opening balance Purchase Purchase return 14 19 Sale 24 Sale return (on 19 Oct. sale) 28 Purchase Number 46 48 60 75 11 74 5 41 October's cost of sales expense Cost of inventories on hand at 31 October 2019 $ Unit cost 6.70 6.50 For the inventories item (wall plaques), calculate October's cost of sales expense and the cost of inventories on hand at 31 October 2019. (Enter your answers to the nearest cent.) $ 7.10 7.10 6.60

Perth Emporium is a gift shop situated in a small fishing village. The business carries a range of merchandise that it accounts for under the perpetual method. Cost is assigned using the FIFO cost formula. All purchases are on FOB shipping terms, with 30 days credit. The end of the reporting period is 30 June. The following information lists the transactions during October 2019 for one item of inventories (wall plaques): Date Detail Oct. 1 4 8 Sale 11 Purchase Opening balance Purchase Purchase return 14 19 Sale 24 Sale return (on 19 Oct. sale) 28 Purchase Number 46 48 60 75 11 74 5 41 October's cost of sales expense Cost of inventories on hand at 31 October 2019 $ Unit cost 6.70 6.50 For the inventories item (wall plaques), calculate October's cost of sales expense and the cost of inventories on hand at 31 October 2019. (Enter your answers to the nearest cent.) $ 7.10 7.10 6.60

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EA: Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises....

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On March 1, Bates Board Shop sells 280 surfboards to a local lifeguard station at a sales price of $430 per board. The cost to Bates is $180 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Create the journal entries for Bates to recognize the following transactions. Assume the perpetual inventory system is used. A. the initial sale B. the subsequent customer payment on March 10 If an amount box does not require an entry, leave it blank. Mar. 1 Accounts Receivable Accounts Receivable Cost of Goods Sold Cost of Goods Sold Mar. 1 - Select - - Select - - Select - - Select - Mar. 10 - Select - - Select - - Select - - Select - - Select - - Select -
Review the following situations and record any necessary journal entries for Letter Depot. Mar. 9 Letter Depot purchases $11,480 worth of merchandise on credit from a manufacturer. Shipping charges are an extra $460 cash. Terms of the purchase are 2/10, n/40, FOB Destination, invoice dated March 9. Mar. 20 Letter Depot sells $7,500 worth of merchandise to a customer who pays on credit. The merchandise has a cost to Letter Depot of $2,850. Shipping charges are an extra $420 cash. Terms of the sale are 3/15, n/50, FOB Destination, invoice dated March 20. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.
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