1. Travis Company purchased merchandise on account from a supplier    for $7,400, terms 2/10, net 30. Travis Company        paid for the merchandise within the discount period.       Prepare the journal entry assuming a perpetual inventory system 2.  Madison Company's perpetual inventory records indicate that $875,300    of merchandise should be on hand on October 31.        The physical inventory indicates that $781,900 is actually on hand.   Journalize the adjusting entry for the i         nventory shrinkage for Madison Company for the year ended October 31.

Q: Glasgow Company uses the periodic inventory system. On February 1, the corporation purchased…

A: Introduction:- On February 1, the corporation purchased inventory on account for $16,000. The terms…

Q: On October 5, Blossom Company sells merchandise to Pina Company for $5,400, terms 2/10, n/30. The…

A: PERPETUAL INVENTORY SYSTEM:                                                           It is a method…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: A company purchased $1800 of merchandise on July 5 with terms 2/10, n/30. on July 7, it returned…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: e April transactions for Bird Company (the buyer).

A:

Q: A company has the following transactions during March: March 3 Purchases inventory on account for…

A: Solution Concept Under perpetual inventory system the inventory records is updated regularly This…

Q: Sarasota Corp. uses a perpetual inventory system. The company had the following inventory…

A: Introduction: Journal entry is used to document a commercial transaction in a corporation's…

Q: A merchandising company’s ledger on May 31, its fiscal year-end, includes the following accounts…

A: Journalize the entries in the following way:

Q: Assume that Telca Co. uses periodic inventory system. The following are the transactions that…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: The following merchandise transactions occured in december. Both companies use a perpetual inventory…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Travis Company purchased merchandise on account from a supplier for $8,000, terms 2/10, net 30.…

A: It is visible that there are two rows available for the 2nd entry. So the net method will be used.…

Q: Waren's Gift Shop uses a periodic inventory system. At December 31, Year 1, the accounting E records…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Abe's Printing Supply Company uses a perpetual inventory system. The company had the following…

A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…

Q: Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45 on December 26.…

A: Journal Entries Sampson Company would record each transaction Journal Entries Batson Company would…

Q: Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A…

A: In Periodic inventory , the beginning inventory balance is written off by  debiting it  to income…

Q: Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting…

A: Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Q: Newman Hardware Store completed the following transactions in December 2019. It uses perpetual…

A: a) Required journal entries:

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage indicates loss of inventory by normal wear and tear e.g. due to evaporation in…

Q: (a) Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point…

A: Journal entries are to be recorded for sale and purchase of inventory on the basis of perpetual…

Q: Travis Company purchased merchandise on account from a supplier for $10,700, terms 2/10, net 30.…

A: As per perpetual inventory system, purchases increases the merchandise inventory which is an asset…

Q: Presented below are selected transactions for Flounder Company during September and October of the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: madison company perpetual inventory records indicate that 875,300 of merchandise should be on hand…

A: Adjusting entry: Date Account Title and Explanation Debit ($) Credit ($) oct 31 Cost…

Q: On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit…

A: A perpetual inventory system is used to track the flow of inventory in real time through a business,…

Q: The Merchandise Inventory account balance is $56,000. A physical count of inventory reveals that the…

A: SOLUTION- AS PER THE INFORMATION GIVEN IN THE QUESTION  WE HAVE- ACTUAL MERCHANDISE INVENTORY =…

Q: On June 10, Cullumber Company purchased $7,300 of merchandise from Oriole Company, terms 3/10, n/30.…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: The following selected transactions were completed by Betz Company during July of the current year.…

A: The net payment to Saxon Company, $11,834 is computed by reducing discount percentage of 2% from…

Q: On April 15, Jones, Inc. purchased merchandise inventory at an invoice price of $350,000, with terms…

A: Discount on Payment = Invoice amount x rate of discount = $350,000 x 3% = $10,500

Q: A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account…

A: A perpetual inventory system seems to be an application that constantly assesses your inventory…

Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the…

A: Purchase amount net of discount = P20,000 - 2%  = P19,600

Q: The following transactions are for Blossom Company. 1.   On December 3, Blossom Company sold…

A: Inventory refers to the stock that the company held for the resale purpose or the goods that are not…

Q: resented below are transactions related to Sunland Company. 1.   On December 3, Sunland Company…

A: Introduction: Journal: Recording of a business transaction in a chronological order. First step in…

Q: A company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30 on July 7, it returned…

A: Inventory Purchased = $ 3700 Inventory returned = $ 850 Inventory is purchased on account Terms for…

Q: The following selected transactions were completed by Betz Company during July of the current year.…

A: Under the net method, purchases and sales are recorded at the net amount (gross - discount).   For…

Q: Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller)…

A: Accounts receivable is the money owed to a firm for goods sold or services performed on credit basis…

Q: A company purchased $3,000 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned…

A: Under perpetual inventory system, inventory purchased is recorded as merchandise and freight expense…

Q: On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company, with credit…

A: As per net method of accounting, it assumes that customer will pay within discount period hence it…

Q: Novelty Furnishings Company's perpetual inventory records indicate that $755,000 of merchandise…

A: Inventory Shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Hadison Company's perpetual inventory records indicate that $531,630 of merchandise should be on…

A: Solution:- Preparation of Adjusting journal entry for the inventory shrinkage for Madison company…

Q: a company purchased inventory for $2,200 on account, and recorded the following journal entry:…

A: Purchases: Purchases refer to the business act of procuring the merchandise inventory.   Purchase…

Q: Mathis Company and Reece Company use the perpetual inventory system. The following transactions…

A: The question is based on the concept of Financial Accounting.

Q: At year-end, the perpetual inventory records of Blue Company showed merchandise inventory of…

A: Perpetual inventory system is the system in which transaction to purchase and sale of goods are…

Q: current year. Flounder uses a periodic inventory system. Sept. 1   Purchased merchandise on…

A:

Q: Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45.  The cost of the…

A: The question is related to the Journal entry in the books of both the comapny.

Q: correct journal entry to record the payment on july 12th is

A: Answer:   Debit account Pay 2400 credit merchandise inventory 72 credit cash 2,328

Q: Travis Company purchased merchandise on account from a supplier for $12,300, terms 2/10, net 30.…

A: Cash paid = Purchase - discount Discount = Purchases x discount rate

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.