4) The first week, the store sold 12 pairs for $1 60 each in cash sales. 5) On the 10th, a sale of 30 pairs of shoes for $50 each was made to the 6)_razorbacks's basketball teams on account, terms 2/10, n/30. 6) 71_4_pairs of shoes were returned from a previous month sale that had a sales price of $50 per pair and a cost of $25 per pair.

4) The first week, the store sold 12 pairs for $1 60 each in cash sales. 5) On the 10th, a sale of 30 pairs of shoes for $50 each was made to the 6)_razorbacks's basketball teams on account, terms 2/10, n/30. 6) 71_4_pairs of shoes were returned from a previous month sale that had a sales price of $50 per pair and a cost of $25 per pair.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 5P: A chain of appliance stores, APP Corporation, purchases inventory with a net price of 500,000 each...

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On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is attempting to project cash receipts and disbursements through April 30. On May 1, a note payable of 10,000 will be due. This amount was borrowed on January 1 to carry the company through its first four months of operation. The unit purchase cost of the companys single product, a box of Sweet Pleasures chocolates, is 12. The unit sales price is 28. Projected purchases and sales in units for the first four months are: Sales terms call for a 5% discount if paid within the same month that the sale occurred. It is expected that 50% of the billings will be collected within the discount period, 25% by the end of the month after purchase, 19% in the following month, and 6% will be uncollectible. Approximately 60% of the purchases are paid for in the month purchased. The rest are due and payable in the next month. Total fixed marketing and administrative expenses for each month include cash expenses of 5,000 and depreciation on equipment of 2,000. Variable marketing and administrative expenses total 6 per unit sold. All marketing and administrative expenses are paid as incurred. REQUIREMENT You have been asked to prepare a cash budget for the next four months to see if the loan can be repaid. Review the worksheet CASHBUD that follows these requirements. The problem data have already been entered in the Data Section of the worksheet.
During its first month of business, Dig the Dogs, Inc. purchased $700 of hotdogs of which it paid $300 and owes the rest. During the month, it sold 3/4 of its inventory for $1,000 on account. What is the amount of Cost of Goods Sold for the month ended?
In its first year of operations, Dulany Company, a clothing store, purchased $18,000 of merchandisefrom a supplier on account, terms 2/10, n 30. Dulany Company returned $3,000 of defectivemerchandise, and then paid the amount due within the discount period. During the year, the companysold merchandise inventory costing $12,000 to its customers. What would be the balance in Dulany’sCompany’s Merchandise Inventory account at the end of the year?A. $2,700B. $3,200C. $3,300D. $2,640
During its first month of business, Dig the Dogs, Inc. purchased $900 of hotdogs of which it paid $500 and owes the rest. During the month, it sold two thirds of its inventory for $1,500 on account. What is the amount of Cost of Goods Sold for the month ended?
Firm A is a merchandiser selling small devices. At the beginning of October, it has 400 devices in the warehouse. Each cost is 2.5 dollars. On Oct.5th, the firm purchased 300 new devices with a price of 3 dollars each. On Oct.10th, the firm sold 500 devices. On Oct.15th, the firm purchased 400 new devices with a price of 3.5 dollars each. On Oct.20th, the firm sold 200 devices. On Oct.25th, the firm sold 300 devices. On Oct.15th, the firm purchased 250 new devices with a price of 4 dollars each. Please determine the cost of merchandise sold during October and how the calculation process.
Firm A is a merchandiser selling small devices. At the beginning of October, it has 400 devices in the warehouse. Each cost is 2.5 dollars. On Oct.5th, the firm purchased 300 new devices with a price of 3 dollars each. On Oct.10th, the firm sold 500 devices. On Oct.15th, the firm purchased 400 new devices with a price of 3.5 dollars each. On Oct.20th, the firm sold 200 devices. On Oct.25th, the firm sold 300 devices. On Oct.30th, the firm purchased 250 new devices with a price of 4 dollars each. Please determine the cost of merchandise sold during October and show the calculation process. Use LIFO Perpetual method.
Elaine Company, a clothing store, sells clothing for a total selling price of $50,000 with a related cost of $35,000. Customers have a right of return within 30 days. Elaine Company estimates that 10% of the sales will be returned by customers. The entry to recognize the cost of inventory sold will include a credit to “inventory” and a debit to cost of goods sold for: $30,000. $31,500. $35,000. $38,500.
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On October 1 , Benji's Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $200 each. During the month of October, the following transactions occurred. Oct. 4 Purchased 40 bicycles at a cost of $200 each from Monroe Bicycle Company, terms 1/10,n/30 6 Sold 25 bicycles to Team Wisconsin for $330 each, terms 2/10,n/30 . 7 Received credit from Monroe Bicycle Company for the return of 2 defective bicycles. 13 Issued a credit memo to Team Wisconsin for the return of a defective bicycle. 14 Paid Monroe Bicycle Company in full, less discount. Nov. 2 Received cash for remainder owed from Team Wisconsin Instructions (a) What is the ending inventory on October 31 ? (b) What is the cost of goods sold on October 31 ? (c) What is gross profit for the month of October? (d) [Not Required] Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.
Direction : Read and analyze the given situation below and write the answers for each question on your answer sheet. Don’t forget your solution. • The Excelsior Merchandising purchased merchandise costing P250,000.00 for the month of October. It paid P10,000 for freight (transportation) for the shipment of the goods from the seller to its store. It insured the merchandise for P25,000. It sold the merchandise for P420,000. For the current month, it incurred the following expenses: Delivery Expense P15,000 Salary Expense P30,000 Miscellaneous Expense P25,000 Utilities Expense P10,000 The firm earned interest on the promissory notes of its customer amounting to P12,000. It paid interest to the bank on a loan it took amounting to P8,000 1. Compute for the following: a. Cost of sales b. Gross profit c. Operating Expenses d. Operating Profit/Loss e. Other Income f. Other Expense g. Net Profit/Loss
The BEV Toy Shop purchased 50 wagons at $45 per wagon less a 40% trade discount on May 8. The invoice had terms of 3/10, 2/20, N/30. On May 18, the shop sent a check for an amount that gave it a credit for ½ the balance due. On May 31, the remaining balance was paid. The shop expects a profit of 30% of cost and 15% of cost for operating expenses. From May until the end of September, the shop sold 40 wagons at its regular markup. From September through December, the remaining wagons were sold with a 35% markdown price. It is your task to determine the following, remembering to show and label all calculations: The total cost of the wagons before any discount was taken; the net cost after the trade discount. The amount of remittance to the nearest cent on May 18. The amount of remittance to the nearest cent on May 31. The total cost and individual cost to the nearest cent per wagon after all discounts. The amount saved by making the two payments. The breakeven point to the nearest cent…
Kathy's Corner Store has total cash sales for the month of $34,000 excluding sales taxes. If the sales tax rate is 5%, which journal entry is needed? (Ignore Cost of Goods Sold.) A. debit Cash $35,700, credit Sales Revenue $35,700 B. debit Cash $32,300, debit Sales Tax Receivable for $1,700 and credit Sales Revenue for $34,000 C. debit Cash $34,000 and credit Sales Revenue $34,000 D. debit Cash $35,700, credit Sales Revenue $34,000 and credit Sales Tax Payable $1,700