HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5.31E
To determine
Introduction:
To record: The journal entries.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Travis 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 field
Journalize the following merchandise transactions, using the net method under a perpetual inventory system.
a. Sold merchandise on account, $18,800 with terms 1/10, n/30. The cost of the goods sold was $11,280. If an amount box does not require an entry, leave it blank.
Accounts Receivable
Sales
Purchases
Feedback
-X
Check My Work
(a) When the perpetual inventory system is used, two entries are recorded each time sale is made. In the first entry, accounts receivable and the sale are recorded, less the discount. A second entry
records the cost of the merchandise sold and the reduction of inventory on hand.
Cash
✓
b. Received payment less the discount. If an amount box does not require an entry, leave it blank.
Feedback
Check My Work
(b) The exercise assumes the invoice will be paid within the discount period, so the seller records the sale at the discounted amount.
c. Refunded $390 to customer for defective merchandise that was not returned. If an amount box does not require an entry,…
Task 1 : Journalizing using Perpetual Inventory System
Directions: Prepare the general journal entries to record these transactions using a perpetual inventory system. (Record all purchases initially at the gross invoice amount) Please use Journal sheets for this task.
Wong's Company had the following transactions during December 2020:
December 1 – Sold merchandise for credit for $5,000 terms 3/10,n/30. The items sold had a cost of $3,500.
2 – Purchased merchandise for cash, $720.
4 – Purchased merchandise on credit for $2,600, terms 1/20,n/40.
10- Issued a credit memorandum for $300 to a customer who returned merchandise purchased on November 29. The return items had a cost of $210.
14- Received payment for merchandise sold on December 1.
12 – Received a credit memorandum for the return of faulty merchandise purchased on December 4 for $600.
13 – Paid freight charges of…
Chapter 5 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - Prob. 5QCCh. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QCCh. 5 - Prob. 10AQC
Ch. 5 - Prob. 11BQCCh. 5 - What is a merchandiser, and what is the name of...Ch. 5 - Prob. 2RQCh. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods Sold (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - What are the two types of inventory accounting...Ch. 5 - What is an invoice?Ch. 5 - What account is debited when recording a purchase...Ch. 5 - Prob. 9RQCh. 5 - What is a purchase return? How does a purchase...Ch. 5 - Prob. 11RQCh. 5 - How is the net cost of inventory calculated?Ch. 5 - What are the two journal entries involved when...Ch. 5 - Prob. 14RQCh. 5 - When granting a sales allowance, is there a return...Ch. 5 - Prob. 16RQCh. 5 - Prob. 17RQCh. 5 - Prob. 18RQCh. 5 - What are the four steps involved in the closing...Ch. 5 - Prob. 20RQCh. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23RQCh. 5 - Prob. 24ARQCh. 5 - Prob. 25BRQCh. 5 - Prob. 26BRQCh. 5 - Prob. 27BRQCh. 5 - Prob. 28BRQCh. 5 - Prob. 29BRQCh. 5 - Prob. 30BRQCh. 5 - Prob. 31BRQCh. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - Prob. 5.2SECh. 5 - Prob. 5.3SECh. 5 - Prob. 5.4SECh. 5 - Prob. 5.5SECh. 5 - Prob. 5.6SECh. 5 - Prob. 5.7SECh. 5 - Prob. 5.8SECh. 5 - Prob. 5.9SECh. 5 - Prob. 5.10SECh. 5 - Prob. 5.11SECh. 5 - Prob. 5.12SECh. 5 - Prob. 5.13SECh. 5 - Prob. 5.14SECh. 5 - Prob. 5.15SECh. 5 - Prob. 5.16SECh. 5 - Prob. 5.17SECh. 5 - Prob. 5.18SECh. 5 - Prob. 5.19SECh. 5 - For all exercises, assume the perpetual inventory...Ch. 5 - Journalizing purchase transactions from an invoice...Ch. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Use the following information to answer Exercises...Ch. 5 - Prob. 5.27ECh. 5 - Prob. 5.29ECh. 5 - Prob. 5.30ECh. 5 - Prob. 5.31ECh. 5 - Prob. 5.32ECh. 5 - Prob. 5.33ECh. 5 - Prob. 5.34ECh. 5 - Prob. 5.35ECh. 5 - Prob. 5.36APCh. 5 - Prob. 5.37APCh. 5 - Prob. 5.38APCh. 5 - Prob. 5.39APCh. 5 - Prob. 5.40APCh. 5 - Prob. 5.41APCh. 5 - Prob. 5.42APCh. 5 - Prob. 5.43BPCh. 5 - Prob. 5.44BPCh. 5 - Prob. 5.45BPCh. 5 - Prob. 5.46BPCh. 5 - Prob. 5.47BPCh. 5 - Prob. 5.48BPCh. 5 - Prob. 5.49BPCh. 5 - Prob. 5.50CPCh. 5 - Prob. 5.51CPCh. 5 - Prob. 5.52PSCh. 5 - Prob. 5.1CTDCCh. 5 - Prob. 5.1CTEICh. 5 - Prob. 5.1CTFC
Knowledge Booster
Similar questions
- Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?arrow_forwardRecord the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, 1,815.24. The cost of merchandise was 1,320. b. Issued credit memorandum no. 56 to Southridge Manufacturing, Inc., for merchandise returned, 622. The cost of the merchandise was 485. c. Bought merchandise on account from Michals Inc., invoice no. 1685, 850; terms 1/10, n/30; dated April 14; FOB Dallas, freight prepaid and added to the invoice, 65.00 (total 915). d. Received credit memorandum no. 219 from Michals Inc. for merchandise returned, 210.arrow_forwardPurchase Discounts For each of the following transactions of Buckeye Corporation, prepare the appropriate journal entry. (All purchases on credit are made with terms of 1/10, n/30, and Buckeye uses the periodic system of inventory.) July 3: Purchased merchandise on credit from Wildcat Corp. for $3,500. July 12: Paid amount owed to Wildcat Corp.arrow_forward
- RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.arrow_forwardBeginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.arrow_forwardSaved Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron. 1 Purchased merchandise from Aron Company for $7,000 under credit terms of l/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $4,900 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Waters Corporation for $6, 000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 Paid $100 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $500 and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems…arrow_forward
- Purchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. (If an amount box does not require an entry, leave it blank.) a. Purchased $31,000 of merchandise from Schell Co. on account, terms 2/10, n/30. b. Paid the amount owed on the invoice. c. Discovered that merchandise with an invoice amount of $6,200 purchased in (a) was defective and returned items, receiving credit. d. Purchased $5,100 of merchandise from Schell Co. on account, terms n/30. e. Received a refund from Schell Co. for return in (c) less the purchase in (d). 38 Dravious Nextarrow_forwardJournalize the following transactions for the buyer, Jones Company, using the net method to account for purchase discounts. Assume a perpetual inventory system. October 3 Purchased goods from Grieg Company on account, $8,000, terms 5/10, n/30. October 9 Returned defective merchandise to Grieg Company that was previously purchased on account, $960. October 14 Paid the amount due to Grieg Company. Date Account Title Debit Credit Xarrow_forwardPurchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. (If an amount box does not require an entry, leave it blank.) a. Purchased $31,00 of merchandise from Schell Co. on account, terms 2/10, n/30. b. Paid the amount owed on the invoice. c. Discovered that merchardise with an invoice amount of $6,200 purchased in (a) was defective and returned items, receiving credit. 88 d. Purchased $5,100 of merchandise from Schell Co. on account, terms n/30. 88 e. Received a refund from Schell Co. for return in (c) less the purchase in (d).arrow_forward
- Cycle Wholesaling sells merchandise on credit terms of 2/10, n/30. A sale for $800 (cost of goodssold of $500) was made to Sarah’s Cycles on February 1. Assume Cycle Wholesaling uses a perpetual inventory system.Required:1. Give the journal entry Cycle Wholesaling would make to record the sale to Sarah’s Cycles.2. Give the journal entry to record the collection of the account, assuming it was collected in fullon February 9.3. Give the journal entry, assuming, instead, that the account was collected in full on March 2.4. Calculate the gross profit percentage for the sale to Sarah’s Cycles (rounded to one decimalplace), assuming the account was collected in full on February 9.arrow_forwardPurchase-related transcations using perpetual inventory system The following. selected transactions were completed by Betz Company during July of the current year: July 1. Purchased merchandise from Sabot Imports Co,$20,500.terms FOB destination,N/30. 3. purchased merchandise from Saxon Co ,$12.000.terms FOB shipping point 2/10.n/eom.Prepaid frieght of $75 was added to the invoive. 5. purcgased merchandise from Schnee Co.$8,000,terms FOB destination.2/10,n/30. 6. Issued debit memo to Schnee Co. for merchandise with an invoice amount of $1,500 returned from purchases on July 5. 13. Paid Saxon Co for invouce of July 3. 14. Paid Schnee Co.for invouve of July 4, less debit memo of july 6. 19. Purchased merchandies from Southmont Co,$18,900,terms FOB shipping point n/eom. 19. paid freight of $140 on July 19 from Southmont Co. 20. Purchased merchandise from Stevens Co,$33,000,terms FOB destination.1/10, n/30. 30.Paid Stevens Co for invove of July 20. 31. Paid Salot Imports Co.for invoice of…arrow_forwardPurchase-related transactionsThe Stationery Company purchased merchandise on account from asupplier for $14,500, terms 2/10, n/30. The Stationery Company returnedmerchandise with an invoice amount of $3,500 and received full credit. a. What is the amount of cash required for the payment?b. Under a perpetual inventory system, what account is credited by TheStationery Company to record the return:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning