3. Ramsey Company issues merchandise inventory. a. Journalize Ramsey's 1. The issuance of 2. The payment of t b. Journalize Buckner's 1. The receipt of the 2. The receipt of the
Q: 6. when a cormpany returns merchandise previously purchased on account, the entry to record the…
A: Hi student Since there are multiple questions, we will answer only first question. Whenever business…
Q: 4. Which accounts are affected in the closing process under a perpetual inventory system? Oincome…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the…
A: FOB shipping point sale: FOB shipping point sale: When the goods are shipped to the buyer, the title…
Q: Which one of the following transactions is recorded with the same entry in a perpetual and a…
A: With the perpetual system all the sales are directly credited to inventory and all the purchases are…
Q: Which of the following is the correct journal entry for a return of goods that were purchased on…
A: As periodic inventory system purchases and sales are used instead of merchandise inventory.
Q: 40 Under a perpetual inventory system, acquisition of merchandise for resale is debited to the O a.…
A: 40) Acquisition of merchandise is always debited to the Purchases Account as perpetual system keeps…
Q: Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods…
A: Since you have asked multiple questions, we will solve the first one for you. If you want any…
Q: Which journal entry is correct when there is a sale under a perpetual inventory and FOB shipping…
A: Solution- Accounts payable -------------------DR To Merchandise inventory. (To…
Q: Which of the following journal entries is appropiate when a credit sales is made under a perpetual…
A: Under the perpetual inventory method, we need to record sales and also the cost of goods sold.
Q: If title to merchandise purchases passes to the buyer when the goods are shipped from the seller,…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 2. The entry to record the return of $25 of inventory to a supplier under the perpetual inventory…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry…
A: Inventory system of book keeping means where proper books of account relating to inventory has been…
Q: Amex Stores should include which of the following items in its inventory at the statement of…
A: solution concept we should always consider the following points while valuing the inventory goods…
Q: Q2: Match the items below by entering the appropriate code letter in the space provided. А.…
A: A monetary exchange for a good or service is referred to as a transaction. Regardless of when…
Q: The transactions that follow took place under the perpetual inventory system. Record each…
A: Ledgers are the accounts prepared by a business to prepare the financial statements and contains as…
Q: 5. Shown below are selected transactions of alpha store that uses a perpetual inventory system. a)…
A: A perpetual inventory system could be a methodology of inventory management that records a period of…
Q: B) Cost of goods sold will be shown. *22. Identify the accounts that are added to or deducted from…
A: Periodic inventory system is an inventory system in which all purchases and sales transactions…
Q: 58. In closing the cost of sales amount and establishing the merchandise ending inventory, the…
A: Answer: concept the journal entry for the cost of sales is cost of goods sold to merchandise…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $32,20o, terms 2/15, net 45. b. The cost…
A: Journal entries in the books of Sampson Co. sales discount = $32,200* 2% =…
Q: Which account will be debited to record the purchase of merchandise on credit under periodic…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A company uses the perpetual inventory system and recorded the following entry: 2,500 Accounts…
A: Accounts payable is the amount owed by an entity to its suppliers/vendors for the goods and services…
Q: What accounts are used to recognize a retailer's purchase from a manufacturer on credit? Assume the…
A: Perpetual inventory system is a method under which the movement of inventory is recorded at…
Q: 31. Under a perpetual inventory system, a.a physical count is required to determine cost of…
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
Q: Normal balances of merchandise accountsWhat is the normal balance of the following accounts: (a)…
A: Merchandise business is that form of business in which seller purchases goods from some other person…
Q: The journal entry for the purchase of inventory on account using the perpetual inventory system is
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
Q: Using a perpetual inventory system, the entry to record the sale of merchandise on account includes…
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
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A: As per First in First Out method(FIFO) inventory sold is from units purchased earlier, therefore…
Q: The journal entry to write inventory up to the net realizable value would be _______. a) a debit to…
A: SOLUTION- INVENTORY IS AN ASSET AND TO WRITE UP INVENTORY WE HAVE TO CREDIT THE INVENTORY. AS IT…
Q: Under the periodic inventory system, the journal entry to record the purchase of merchandise…
A: Periodic inventory system: The method or system of recording the transactions related to inventory…
Q: For (a) through (d), identify the items designated by X and Y.a. Purchases 2 (X 1 Y) 5 Net…
A: Identify the item X and Y:(a)Purchases - (Purchase discounts + Purchase returns and allowances) =…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $24,30o, terms 2/15, net 45. b. The cost…
A: Solution Date Particulars Debit Credit Batson Co. A/c 24,300 To Sales A/c 24,300…
Q: Journalize the following transactions. Assume the Perpetual inventory system: December 9:…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: 1. Before inventory purchases are recorded, the receiving report should be reconciled to what…
A: Inventory: Inventory refers to the raw materials, work in progress, and finished goods that are held…
Q: Which of the following accounts has a normal debit balance? a.Accounts Payable b.Sales c.Interest…
A: Accounts Payable: Accounts Payable means money owed by a company to its creditors. It is an current…
Q: The Cloud Company employs a perpetual inventory system and the McKenzie Corporation uses a periodic…
A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…
Q: When merchandise is bought for resale, which of the following accounts would be increased? A.…
A: Merchandise: It can be defined as any type of manufactured goods which may include commercial or…
Q: Which account will be debited to record the Sale of merchandise on credit under periodic inventory…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
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- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseResin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
- Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturityOn December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
- Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note is discounted at a 15% rate. RE9-1 Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.Laminate Express extended credit to customer Amal Sunderland in the amount of $244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is $88,440. On April 5, Laminate Express determined that Amal Sunderlands account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.