ABC LLC accounting records shows the following for the year ending on 31 December 2019 Purchase Discounts RO 800, Purchases RO 150,000, Transportation in RO 150 Ending Inventory (Counted) RO 14,400, Purchase Returns 200. The value of Net Cost of Purchases assuming that the business does not have any beginning merchandise inventory

Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…

A: Net cost of purchases = Purchases - Purchase Returns and Allowances - Purchase Discounts +…

Q: I dont know.how to do part a and b. Thank you for your help

A: a) Prepare the journal entries for the given transaction:

Q: Slinky Company purchased merchandise on June 10, 2021, at a price of $38,000, subject to credit…

A: Date Account Debit Credit Jun 10 Merchandise inventory (38000*97%) 36,860     Accounts Payable…

Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2021, the…

A: Base year cost to retail percentage = ( Beginning inventory at cost * 100 / Beginning inventory at…

Q: ABC LLC accounting records shows the following for the year ending on 31 December 2019 : Opening…

A: Prime cost means the addition of direct material and direct labor. Conversion cost means the…

Q: ABC LLC accounting records shows the following for the year ending on 31 December 2019 Purchase…

A: The net purchases is calculated as purchases with adjustment of purchase return and discounts.

Q: displayed below.] On July 15, 2021, the Nixon Car Company purchased 2,200 tires from the Harwell…

A: Under periodic inventory procedure, the Merchandise Inventory account is updated periodically after…

Q: Al Bushra LLC accounting records shows the following for the year ending on 31 December 2017,…

A: Net Cost of Purchases = Purchases - Purchase Discounts - Purchase Returns + Transportation in

Q: Presented below is information related to Windsor, Inc. for the month of January 2020. Ending…

A: Closing entries are used to close the temporary accounts to the permanent account. The income…

Q: Skysong Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $213,418,700 at…

A: Allowance to Reduce Inventory to NRV = inventory  at cost - Inventory at realizable value =…

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: Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial…

A: The question is based on the concept of Final Accounts. As per the Bartleby guidelines we are…

Q: Record the journal entries for the selected transactions encountered by Rainbow Inc. during February…

A: Journal Entry: Record the daily transactions/ entry in the journal is called journal entry. It is…

Q: A company uses a perpetual system to record inventory transactions. The company purchases inventory…

A: Under the Perpetual system of accounting, the cost of goods sold is calculated and recorded…

Q: he business transaction of Tata Motors as follows: The business uses periodic inventory system. 5th…

A: Accounts Payables means those accounts from which business has made purchase of goods or inventory…

Q: Al Bushra LLC accounting records shows the following for the year ending on 31 December 2017,…

A: Please see the next step for the solution

Q: The following transactions are from Sharper Vision Corporation. Purchased inventory on December 10,…

A: The gross method is the one in which the purchases are recorded at full value without deducting the…

Q: On January 1, 2020, Goodbye Electronics Outlets adopted the conventional retail method of…

A: Net markup=28,500-3,500=25,000

Q: Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100…

A: Periodic inventory system. A system of inventory management under which after conducting the…

Q: discount if the invoice is paid before 12th March 2019

A: Sales return and allowance = 40 * 70 = OMR 2800 This returns and allowance would reduce the invoice…

Q: Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100…

A: This question deals with the concept of discount benefits given for early payment. There are many…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: 4.1)

Q: On January 4, 2019, Dunbar Company purchased, on credit, 2,500 television sets at $800 each. Terms…

A: Net price method Date Accounting titles & Explanations Debit Credit         4-Jan…

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system.…

A: The companies usually purchase the goods or render services from the supplier to resale in the…

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system. 5th…

A: The accounts payable balance will reflect purchases made on credit net of cash paid and goods…

Q: ABC Merchandise business follows perpetual inventory system. The business had 200 units in inventory…

A: Ending inventory=Beginning units+Purchases-Sales=200+300-400=100 units

Q: Perpetual and Periodic Systems—Recording Inventory-Related Entries using the Net Method The…

A: Journal entry as per perpetual inventory system is as follows: Resultant table:

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system.…

A: Account payables means the amount owed by business to outsider for the goods received and services…

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system.…

A: "Since you have asked multiple sub part question we will solve the first three sub part question for…

Q: Taylor Company uses a periodic inventory system. The following is partial information from its…

A: Beginning inventory = Cost of goods sold + Ending inventory - (Purchases - Purchase returns) Gross…

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system. 5th…

A: Discount on payment to Moon Motors = purchase value = discount rate = RO20,000 x 5% = RO1,000

Q: Hong Cha-young Company began operations late in 2020. For the first quarter ended March 31, 2020,…

A: Accounts Payable:- It is a current liabilities which has to be paid within a year and it appears in…

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system. 5th…

A: Total Purchase to be reported  = Purchases - Purchases return

Q: 5-Royal traders LLC accounting records shows the following for the year ending on 31 December 2019,…

A: Net cost of purchased means the purchase less all kind of return and allowance and should include…

Q: Below are transactions completed by Bijan Sdn Bhd in August 2019. Bijan Sdn Bhd uses the perpetual…

A: Journal entries are the primary step of recording the transaction in the books of account. Journal…

Q: indly advise on how to add an entry for dlosing inventory in the below income statement reapared for…

A: The cost of goods sold is calculated as follows : Total cost of goods available for sale - Ending…

Q: Make accounting entries for following perpetual inventory transaction  Nov3,2019 sold inventory on…

A: In the given case, the inventory is sold on credit. In case of perpetual inventory transaction, cost…

Q: The business transaction of Tata Motors as follows: The business uses periodic inventory system. 5th…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: ABC Co. uses net method for discounts of inventory. ABC Co. has the following transactions in May…

A: Under net method, purchases has to be recorded assuming the buyer will avail discount. So the…

Q: Tamarisk Corporation began operations on December 1, 2019. The only inventory transaction in 2019…

A: Inventory stock is an asset that is recorded in the balance sheet. Inventory valuation is an…

Q: You are accountant for New Horizon Merchandising Company.  New Horizon Merchandising Company buys…

A: Perpetual inventory system: Under this accounting method for companies moving large amounts of…

Q: The December 31, 2018, year-end inventory balance of the Raymond Corporation is $210,000. You have…

A: FOB Shipping point:   FOB Shipping point means that the buyer pays all costs incurred for the…

Q: ABC Co. uses the gross method for discounts of inventory purchased. ABC Co. has the following…

A: Under the gross method for a discount on inventory purchase, the inventory is recorded at full…

Q: Swifty Corporation accounting records show the following for the year ending on December 31, 2022.…

A: A periodic inventory system updates the inventory account at the end of each accounting period…

Q: 7. The following information belongs to Nizwa Trading company. Inventory balance on January 1, 2019:…

A: The ending inventory can be valued as difference between cost of goods available for sale and cost…

Q: ABC LLCS accounting records shows the following for the year ending on 31st December 2017:Purchase…

A: Cost of goods sold (COGS) refers to the cost including the costs which are directly related to the…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Calculation of Net Sales Net Sales = Gross Sales - Sales Discount Net Sales = 2,843,000 - 16,000 Net…

Q: Morton Company uses a perpetual inventory system. On December 1, 2019, the company purchased…

A: The term discount indicates that the buyer can take the discount of a certain percent if he paid all…

Q: Tamarisk Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,116,400 at…

A: Allowance to reduce inventory to market =   Ending inventory at cost - Ending inventory at…

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.