2. Doichland Company is a retailer that uses perpetual inventory system. The following informationabout the company's April transaction is available:i.The company had inventory worth $8,700 on April 1. Cash on the same day was $88,000.ii. The company made sales of $500,000 for the month of April. The customers did not like thequality of few products sold by Doichland Company, thus inventories worth $5,800 werereturned to Doichland Company.iii. During the month, Doichland Company purchased inventories worth $56,000 (terms: FOBShipping point, 2/10, n/30). The freight cost was $1,000. Inventories worth $2,000 werereturned to the seller.iv. Doichland Company sold some old non current assets for a gain of $3.400.v. The owner of the company withdrew $1,500 for personal use.vi. At the end of the month Doichland Company again purchased new inventories worth $10,000(terms: FOB Destination; 2/10, n/45). At the end of the month the total value of inventory onhand was $32,000.Required :a. Calculate the Gross profit for the month of April, for Doichland Company.3. Charles and Co.completed the following merchandise transaction in the month of January of thecurrent year:January 1Purchased inventory worth $6,500 from TJ Company, with the following terms :FOB Shipping Point, 2/10, n/ 45. The freight cost of $170 was paid on the same day.January 3Sold merchandise worth $2,300 with transportation terms of FOB Shipping Pointand credit terms of 2/7 , n /30. The cost of the merchandise sold was $1,300. Thefreight cost of $150 was paid on the same day.January 4Merchandise worth $700 was returned to TJ Company.January 9Received payment for merchandise sold on January 3.January 12Made payments for the inventories purchased from TJ Company.Required:Journalise the transactions that are to included in the books of Charles and Co. , using the perpetualinventory system.

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Description: 2. Doichland Company is a retailer that uses perpetual inventory system. The following informationabout the company's April transaction is available:i.The company had inventory worth $8,700 on April 1. Cash on the same day was $88,000.ii. The compan

Gross profit is calculated by deducting the cost of goods sold from sales revenue.

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2. Doichland Company is a retailer that uses perpetual inventory system. The following information about the company's April transaction is available: i. The company had inventory worth $8,700 on April 1. Cash on the same day was $88,000. ii. The company made sales of $500,000 for the month of April. The customers did not like the quality of few products sold by Doichland Company, thus inventories worth $5,800 were retumed to Doichland Company. ii. During the month, Doichland Company purchased inventories worth $56,000 (terms: FOB Shipping point, 2/10, n/30). The freight cost was $1,000. Inventories worth $2,000 were returned to the seller.

2. Doichland Company is a retailer that uses perpetual inventory system. The following information about the company's April transaction is available: i. The company had inventory worth $8,700 on April 1. Cash on the same day was $88,000. ii. The company made sales of $500,000 for the month of April. The customers did not like the quality of few products sold by Doichland Company, thus inventories worth $5,800 were retumed to Doichland Company. ii. During the month, Doichland Company purchased inventories worth $56,000 (terms: FOB Shipping point, 2/10, n/30). The freight cost was $1,000. Inventories worth $2,000 were returned to the seller.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...

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