FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 4, Problem 4BTN
To determine
Memo:
From,
X
To,
V
Date: February 28, 2018
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LEARNING OBJECTIVE: Determine benefits of using subsidiary ledgers for sales and
purchases.
Sally owns a clothing company and found that she was selling more items, and a
greater variety of items, to repeat customers. Sally's CPA advised her to create a set
of accounts to separately track what each of her customers bought from her.
To track her customers' purchases, Sally should set up and use a(n).
(4
a.) sales subsidiary ledger
b.) merchandising account
c.) purchases subsidiary ledger
d.) inventory account
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TIPS:1. Get the Cost of Goods Sold(COGS) - compute for it, andyan yan. Compute for this first.2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income
Additional reference:SINGLE STEP APPROACH that your going to use
Activity 1. Classify Me
Instruction: Identify each element or account title if it can be found on a service or
merchandising business. Complete the table by putting a (v) check mark or (X) cross
mark in the corresponding columns.
ACCOUNTS
SERVICE
MERCHANDISING
BUSINESS
BUSINESS
Ex. Professional Fees
Sales
Consulting Revenue
Purchases
Cost of Sales
Inventory Beginning
Referral Revenue
Freight-In
Purchase Returns and
Allowances
Advertising Revenue
Purchase Discount
Freight-out
Unearned Revenue
Utilities Expense
Depreciation Expense
Allowance for Bad debts
Sales discount
Supplies
Sales Returns and allowances
Advances to suppliers
Advertising Expense
Chapter 4 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 4 - Prob. 1MCQCh. 4 - A company purchased $4,500 of merchandise on May 1...Ch. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQ
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 19QSCh. 4 - Prob. 20QSCh. 4 - Prob. 21QSCh. 4 - Prob. 22QSCh. 4 - Prob. 23QSCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Computing net sales for multiple-step income...Ch. 4 - Impacts of inventory error on key accounts P3 A...Ch. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Prob. 18ECh. 4 - Prob. 19ECh. 4 - Prob. 20ECh. 4 - Prob. 21ECh. 4 - Prob. 22ECh. 4 - Prob. 23ECh. 4 - Prob. 24ECh. 4 - Prob. 25ECh. 4 - Prob. 1PSACh. 4 - Preparing journal entries for merchandising...Ch. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Santana Rey created Business Solutions on October...Ch. 4 - Prob. 1GLPCh. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Prob. 1AACh. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - Prob. 4BTNCh. 4 - Prob. 5BTNCh. 4 - Prob. 6BTN
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- Data collected in sales invoice, purchase order, receiving report, employee time cardarrow_forwardEvery March, Buddie, who owns and operates a small retail shop, takes a large box of receipts and invoices to her accountant so the accountant can file Buddie's taxes in April. Only then does Buddie know if her business has been profitable. Buddie could benefit from a(n) ________.Select one:a. concurrent control systemb. management information system c. balanced scorecard systemd. inventory control systemarrow_forwardQuestion Completion Status: The following select account data is taken from the records of Reese Industries for 2019. Sales Merchandise inventory sales discounts interest expense Sales return and allowances Interest revenue Cost of goods sold Rent expense Depreciation expense: office equipment Insurance expense Advertising expense Accounts receivable Office supplies expense rent revenue sales salaries expense accounts payable common stock Marketing expense 640,363 582,620 58,040 3,677 90,232 10,232 224,598 15,080 3,200 2,450 12,906 100,440 1,600 23,622 30,410 135,404 59,419 31,000 1. Use the data provided to compute net sales for 2019. 2. Prepare a simple income statement for the year ended December 31, 2019. 3.Compute the gross margin for 2019. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).arrow_forward
- In this section, you are asked to review and comment on the one of the business cycles provided. Complete steps 1 and 2 prior to preparing your response: 1. Choose from one of the following cycles: Payroll or Purchasing. 2. Review the list of main activities in the cycle you chose (a summary of main activities is listed for each cycle) from the table below. Payroll Activities 1. Hiring Employees 2. Authorizing Payroll Changes Purchasing Activities 1. Requisitioning goods and services 2. Preparing purchase ordersarrow_forwardFor each of the following records, indicate the appropriate related file structure: master file, transaction file, reference file, or archive file.a. customer ledgersb. purchase ordersc. list of authorized vendorsd. records related to prior pay periodse. vendor ledgersf. hours each employee has worked during the current pay periodg. tax tablesh. sales orders that have been processed and recordedarrow_forwardA retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods soldarrow_forward
- Miss Maria has recently joined the accounting department of SISHGC Limited as an assistant accountant. During her first meeting with the accounting department, the head of the department has elaborated her the responsibilities related to the general ledger and subsidiary ledger. Miss Maria uses the source documents such as purchase orders, sales invoices, and suppliers’ invoices to prepare journal vouchers for general ledger entries. At the end of each working day, she posts the journal vouchers to the general ledger and the related subsidiary ledgers. At the end of each month, Miss Maria reconciles the subsidiary accounts to their control accounts in the general ledger to ensure that there is no difference in these accounts. Required: Discuss the internal control weaknesses and risks associated with the above process.arrow_forwardThe entry to record the return of merchandise from a customer would include a debit to Sales credit to Sales debit to Customer Refunds Payable debit to Estimated Returns Inventoryarrow_forwardThe purchases and disbursements cycle usually begins when Group of answer choices A user department requests for acquisition of goods or services and submits purchase requisition to the purchasing department. A check is issued to the vendor or supplier. The warehouse received the goods from the vendor or supplier. The accounting posts the purchase transaction in the accounts payable ledger.arrow_forward
- On a journal entry with a debit to Cost of Goods Sold you would expect a credit to _____________________ Question 7 options: Accounts Receivable Accounts Payable Cash Merchandise Inventory Sales Revenuearrow_forwardThe dollar amount paid by a retailer to acquire a product from a wholesaler is known as the retailer's expenses cost MSRP markuparrow_forwardThe revenue account for a merchandising business is typically called ___________. Group of answer choices inventory sales. unearned revenue. fees earned. sales or sales of merchandise.arrow_forward
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