Required information Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $24,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $35,500 on October 12. Terms of the purchase were 1/10, 1/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $590 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $19,350 was sold on account for $29,800. d. It was determined that inventory on hand at the end of October cost $40,385. Problem 8-1 (Algo) Part 2 2. Assuming Autumn Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. Autumn considers purchase discounts lost as part of interest expense. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Required information Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $24,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $35,500 on October 12. Terms of the purchase were 1/10, 1/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $590 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $19,350 was sold on account for $29,800. d. It was determined that inventory on hand at the end of October cost $40,385. Problem 8-1 (Algo) Part 2 2. Assuming Autumn Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. Autumn considers purchase discounts lost as part of interest expense. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...

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LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-1B. Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. 3. Determine the ending inventory cost on June 30.
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