Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 18Q
18. Ball Co. purchased inventory with a list price of $4,000 with the terms 2/10, n/30. What amount will be debited to the Merchandise Inventory account?
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Students have asked these similar questions
Under the periodic inventory system, the entry to record a purchase of P60,000, with terms 2/10. n/30 would include
a. Debit to Accounts Payable for P58,800
b. Credit to Purchases for P60,000
c. Credit to Accounts Payable for P60,000
d. Debit to Purchase Discounts for P1,200
1. Business purchased $3600 inventory from westlem terms 1/10,n/20 FOB . what is the merchandise inventory entry?
2. Business paid westlem in full. what is the merchandise inventory entry?
Business purchased $3600 of inventory from westlem, terms 1/10,n/20 FOB . what is merchandise inventory entry ?
Chapter 3 Solutions
Survey Of Accounting
Ch. 3 - 1. Define merchandise inventory. What types of...Ch. 3 - 2. What is the difference between a product cost...Ch. 3 - 3. How is the cost of goods available for sale...Ch. 3 - 4. What portion of cost of goods available for...Ch. 3 - 5. When are period costs expensed? When are...Ch. 3 - 6. If PetCo had net sales of 600,000, goods...Ch. 3 - Prob. 7QCh. 3 - 8. What are the effects of the following types of...Ch. 3 - 9. Northern Merchandising Company sold inventory...Ch. 3 - 10. If goods are shipped FOB shipping point, which...
Ch. 3 - 11. Define transportation-in. Is it a product or a...Ch. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - 14. Dyer Department Store purchased goods with the...Ch. 3 - 15. Eastern Discount Stores incurred a 5,000 cash...Ch. 3 - 16. What is the purpose of giving credit terms to...Ch. 3 - Prob. 17QCh. 3 - 18. Ball Co. purchased inventory with a list price...Ch. 3 - 22. Explain the difference between purchase...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - 25. What is the advantage of using common size...Ch. 3 - 27. What is the purpose of preparing a schedule of...Ch. 3 - 28. Explain how the periodic inventory system...Ch. 3 - Prob. 25QCh. 3 - Exercise 3-1 Determining the cost of financing...Ch. 3 - Exercise 3-2 Comparing a merchandising company...Ch. 3 - Exercise 3-3 Effect of inventory transactions on...Ch. 3 - Exercise 3-4 Effect of inventory transactions on...Ch. 3 - Exercise 3-5 Recording inventory transactions in a...Ch. 3 - Exercise 4-6A Understanding the freight terms FOB...Ch. 3 - Exercise 3-7 Effect of purchase returns and...Ch. 3 - Exercise 3-8 Accounting for product costs:...Ch. 3 - Effect of product cost and period cost: Horizontal...Ch. 3 - Cash Discounts and Purchase Returns On April 6,...Ch. 3 - Exercise 4-9A Determining the effect of inventory...Ch. 3 - Inventory financing costs Bill Norman comes to you...Ch. 3 - Effect of shrinkage: Perpetual system Ho Designs...Ch. 3 - Comparing gross margin and gain on sale of land...Ch. 3 - Single-step and multistep income statements The...Ch. 3 - Prob. 16ECh. 3 - Effect of cash discounts on financial statements:...Ch. 3 - Using common size statements and ratios to make...Ch. 3 - Prob. 19ECh. 3 - Determining cost of goods sold: Periodic system...Ch. 3 - Identifying product and period costs Required...Ch. 3 - Problem 4-23A Identifying freight costs Required...Ch. 3 - Effect of purchase returns and allowances and...Ch. 3 - Preparing a schedule of cost of goods sold and...Ch. 3 - Prob. 25PCh. 3 - Comprehensive cycle problem: Perpetual system At...Ch. 3 - Prob. 27PCh. 3 - Comprehensive cycle problem: Periodic system...Ch. 3 - Prob. 1ATCCh. 3 - ATC 3-2 Group Exercise Multistep income statement...Ch. 3 - Prob. 3ATCCh. 3 - Prob. 4ATC
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- Journalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $12,100 with terms 2/10, net 30. The cost of the goods sold was $7,865. If an amount box does not require an entry, leave it blank.arrow_forwardJournalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $13,800, with terms n/30. The cost of the merchandise sold was $8,970. If an amount box does not require an entry, leave it blank. 3 b. Received payment. If an amount box does not require an entry, leave it blank. 3arrow_forwardAssume that Marigold Corp. uses a periodic inventory system and has these account balances: Purchases $405,200; Purchase Returns and Allowances $12,400; Purchase Discounts $7,900; and Freight-in $15,800.Determine net purchases and cost of goods purchased. Net purchases $enter a dollar amount Cost of goods purchased $enter a dollar amount Need Help!arrow_forward
- Dickson Co., purchased inventory with an invoice price of $2,200, shipping charges of $200, inspection costs of $50. How much should this purchase be recorded in the inventory account for? a. $2,450 b. $2,400 c. $2,250 d. $2,200arrow_forwardJournalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $14,000 with terms 2/10, net 30. The cost of the goods sold was $9,100. If an amount box does not require an entry, leave it blank. b. Received payment within the discount period. If an amount box does not require an entry, leave it blank.arrow_forwardSold merchandise on account, $72,500 with terms 2/10, n/30. The cost of the merchandise sold was $43,500. Assuming that the discount is taken what is the journal entry for this transaction under the perpetual inventory system?arrow_forward
- a. Sampson Co. sold merchandise to Batson Co. on account, $32,20o, terms 2/15, net 45. b. The cost of the merchandise sold is $24,150. c. Batson Co. paid the invoice within the discount period. Assume both Sampson and Batson use a perpetual inventory system. Prepare the entries that Sampson Co. would record for the information above. a. b. Prepare the entries that Batson Co. would record for the information above. a. and b. C.arrow_forward1) Using a perpetual inventory system, how should a company record the sale of inventory costing $620 for $960 on account? 1. Inventory. 620 Cost of goods sold. 620 Sales revenue. 960 Accounts receivable. 960 2. Accounts receivable. 960 Sales revenue. 960 Cost of goods sold. 620 Inventory. 620 3. Inventory. 620 Gain. 340 Sales revenue. 960 4. Accounts Receivable. 960 Sales revenue. 620 Gain. 340arrow_forwardTravis Company purchased merchandise on account from a supplier for $9,400, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, journalize the entries required for these transactions. If an amount box does not require an entry, leave it blank. a. Inventory Accounts Payable b. Accounts Payable Cash 9,212 9,212 Alpha-numeric input fieldarrow_forward
- 17. Aug L Co purchased goods on credit from Noir $200. 25 Aug L Co sold goods for $120. 31 Aug Closing inventory is $100. Which system of inventory accounting is used by L Co?Explain your answerarrow_forwardJournalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $14,400 with terms 2/10, net 30. The cost of the goods sold was $9,360. If an amount box does not require an entry, leave it blank. Accounts Receivable fill in the blank e07d3e028012fb1_2 fill in the blank e07d3e028012fb1_3 Sales fill in the blank e07d3e028012fb1_5 fill in the blank e07d3e028012fb1_6 Cost of Goods Sold fill in the blank e07d3e028012fb1_8 fill in the blank e07d3e028012fb1_9 Inventory fill in the blank e07d3e028012fb1_11 fill in the blank e07d3e028012fb1_12 b. Received payment within the discount period. If an amount box does not require an entry, leave it blank. Cash fill in the blank 38afbf049ff8fc8_2 fill in the blank 38afbf049ff8fc8_3 Accounts Receivable fill in the blank 38afbf049ff8fc8_5 fill in the blank 38afbf049ff8fc8_6arrow_forwardA Retail Merchandiser was using Perpetual inventory method. The business bought OMR 40,000 of Merchandise under the credit terms of 2/10, n/30. Which account will be Credited in the books of retailer? a. Purchase b. Merchandise inventory c. Accounts Payable d. Accounts receivablearrow_forward
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