A car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory costs assigned to the used car if costs include $ 250 for transportion-in $ 300 for shipping insurance $ 900 for care import duties $ 150 for advertising $ 1,250 for sales staff salaries $ 180 for trimming shrubs Select one: O a. $ 15,450 O b. $ 14,000 O . $14,900 O d. $ 17030

A car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory costs assigned to the used car if costs include $ 250 for transportion-in $ 300 for shipping insurance $ 900 for care import duties $ 150 for advertising $ 1,250 for sales staff salaries $ 180 for trimming shrubs Select one: O a. $ 15,450 O b. $ 14,000 O . $14,900 O d. $ 17030

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1PA: Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15...

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Record journal entries for the following transactions of Furniture Warehouse. A. Aug. 3: Sold 15 couches at $500 each to a customer, credit terms 2/15, n/30, invoice date August 3; the couches cost Furniture Warehouse $150 each. B. Aug. 8: Customer returned 2 couches for a full refund. The merchandise was in sellable condition at the original cost. C. Aug. 15: Customer found 4 defective couches but kept the merchandise for an allowance of $1,000. D. Aug. 18: Customer paid their account in full with cash.
Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5. B. July 10: Furniture Warehouse returned 5 couches for a full refund. C. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. D. July 20: Furniture Warehouse paid their account in full with cash.
Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens Company, invoice no. J34Y9, 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, 15 (total 265.25). 11Bought one weed trimmer from Lionels Lawn Landscaping, invoice no. R7740, 219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, 35 (total 254.72). 15Bought five bags of fertilizer from Wrights Farm Supplies, invoice no. 478, 210.97; terms net 30 days; dated May 13; FOB destination. 25Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, 425.39; terms net 30 days; dated May 22; FOB destination. Assume that Williams Corporation had beginning balances on May 1 of 3,492.29 (Accounts Payable 212), 4,239.49 (Purchases 511), and 234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.
Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000 D. $59,400
A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $150 for transportation-in. $190 for shipping insurance. $730 for car import duties. $200 for advertising. $1,500 for sales staff salaries. $200 for trimming shrubs.
A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include ∙ $250 for transportation-in. ∙ $150 for advertising. ∙ $300 for shipping insurance. ∙ $1,250 for sales staff salaries. ∙ $900 for car import duties. ∙ $180 for trimming shrubs.
A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $190 for transportation-in. $150 for shipping insurance. $850 for car import duties. $110 for advertising. $2,000 for sales staff salaries. $140 for trimming shrubs. Included in Expensed Cost Inventory Cost as incurred Cost $11,000 Transportation-in 190 Import duties 850 Insurance during shipment 150 Advertising 110 Sales staff salaries 2,000 Trimming shrubs 140 Total $14,440
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
Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,000 tires to the NixonCar Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accountingfor cash discounts.Required:1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23,2018.2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15,2018.
Walberg Associates, antique dealers, purchased goods for $37,500. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,200. Walberg Associates insured the shipment at a cost of $150. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $490. Determine the cost of inventory.
Sunstar Company is a wholesaler of car seatcovers. At the beginning of the current year, the entity's inventory consisted of 90 car seatcovers priced at P1,000 each. During the current year, the following events occurred; 1. Purchased 800 car seatcovers on account at P2,000 each 2. Returned 50 defective car seatcovers to supplier and received credit. 3. Paid 600 of the car seatcovers purchased 4. Sold 790 car seatcovers at P2,500 each. 5. Received 30 car seat covers returened by a customer and gave credit. The goods were in excellent condition. 6. Received cash for 680 of the car seatcovers sold 7. Physical count at year-end revealed 60 units on hand. Required; a. Prepare journal entries, including adjustments to record the above transactions assuming the company uses periodic system and perpetual system b. Determine the cost of sales under each inventory system. Sunstar Company is a wholesaler of car seatcovers. At the beginning of the current year, the entity's inventory…
Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accountingfor cash discounts.Required:1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2021.2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2021.