Quiz Essay example

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1. Turnadot & Sons is a small wholesaler of decorative cast iron objects. The following events, related to a special customer order, occur as described below;? August 5, 2005: Turnadot receives the special order for 200 outdoor planters at a selling price of $50 each, including delivery at a future convenient time and location. The customer, with whom Turnadot has had a long-term, trouble-free relationship, pays $3,000 as a deposit and agrees to pay the rest on delivery. Turnadot immediately orders $4,000 worth of planters from its supplier and pays a $1,000 deposit for them.;? August 27, 2005: Turnadot pays $3,000 balance due to the supplier upon delivery of the planters to its warehouse.;? September 5, 2005: The customer calls for…show more content…
Debit the current asset 'advances to suppliers' $1,000, credit cash $1,000;? Debit inventory $1,000, credit cash $1,000;? Debit cost of goods sold $4,000, credit cash $1,000, credit accounts payable $3,000;? Debit cost of goods sold $1,000, credit revenues $1,000;3. Turnadot & Sons is a small wholesaler of decorative cast iron objects. The following events, related to a special customer order, occur as described below;? August 5, 2005: Turnadot receives the special order for 200 outdoor planters at a selling price of $50 each, including delivery at a future convenient time and location. The customer, with whom Turnadot has had a long-term, trouble-free relationship, pays $3,000 as a deposit and agrees to pay the rest on delivery. Turnadot immediately orders $4,000 worth of planters from its supplier and pays a $1,000 deposit for them.;? August 27, 2005: Turnadot pays $3,000 balance due to the supplier upon delivery of the planters to its warehouse.;? September 5, 2005: The customer calls for delivery of the planters, and pays the balance of $7,000 when they arrive at the customer site.;On August 27, 2005, upon delivery of planters to Turnadot's warehouse and payment of $3,000
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