Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Estimating sales returns On December 31, Jack Photography Supplies estimated that approximately 2% of merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns.

Q: When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate…

A: Cost of goods sold = Sales - Gross profit = $1,218,000 - ($1,218,000*45%) = $1,218,000 - $548,100 =…

Q: Cost Selling   Retail Selling Price Inventory of merchandise, June 30 Rs300,000 Rs500,000…

A: a) Cost of Goods Sold It refers to the cost incurred by a company that is directly related to…

Q: Funky Fashions uses a periodic inventory system. The beginning inventory of a particular product,…

A: Inventory valuation means valuing the inventory at the time of its sale and purchase using methods…

Q: The following units of a particular item were available for sale during the calendar year: Jan. 1…

A: Last in first out means that cost of goods sold consist of latest purchase and closing stock consist…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…

A: SOLUTION COST OF GOOD SOLD- IT REFERS TO THE DIRECT COSTS OF PRODUCING THE GOOD SOLD BY THE COMPANY.

Q: Fashion House uses a perpetual inventory system. At thebeginning of the year, inventory amounted to…

A:

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Inventory turnover ratio is a ratio which determines how efficiently and effectively the inventory…

Q: Use the following information to answer the next two (2) items Your sales cut-off examination of…

A:

Q: Mark Price Company uses the gross profit method to estimate inventory for monthly reporting…

A: Ending inventory = Goods available for sale - Cost of goods sold

Q: At the end of Concord Department Store’s fiscal year on November 30, 2020, these accounts appeared…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: Monte Vista uses the perpetual inventory system. At the beginning of the quarter, Monte Vista has…

A: Formula: Cost of goods sold = Beginning Inventory + Purchases - purchase returns - Purchase discount…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: Assume the beginning Inventory as of January 1 consisted of 500 units that were purchased for $8.25…

A: Beginning Inventory         500 First Purchase       700   Second Purchase       800   Third…

Q: the records of Penny company indicated that $ 415,000 of merchandise should be on hand on december…

A: Inventory shrinkage: Any errors or losses of merchandise due to breakage, theft or spoilage are…

Q: HOW DO I PREPARE AN INCOME STATEMENT TABLE? At the end of Monty Department Store’s fiscal year on…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25…

A: Comments; Multiple Questions asked  FIFO - It is a method of inventory valuation in which goods…

Q: in the next year. Assuming the periodic inventory system is used, which of the following adjusting…

A: The correct answer is D . Debit Sales Returns and Allowances and credit Customer Refunds Payable

Q: The firm maintains a perpetual inventory system. Determine the cost of merchandise sold for each…

A: The FIFO method under the perpetual inventory system records the cost of goods sold from the…

Q: Cost Retail Beginning inventory $ 47,000   $ 62,000   Net purchases   10,480     32,800   Net…

A: Under retail inventory method to estimate average cost  of ending inventory and cost of goods sold…

Q: . A record of transactions for the month of September was as follows:   Purchases   Sales May 1…

A: FIFO is first in first out inventory method in which inventory which is purchased first will be sold…

Q: Based on the following data for the current year, what is the inventory turnover? Sales on account…

A: Given: Inventory, beginning of year 39,811 Inventory, end of year 39,291 Cost of goods…

Q: For each of the following, calculate the cost of inventory reported on the balance sheet. (a) The…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…

A: The cost of goods sold(COGS) comprises all the direct expenses such as direct material, direct…

Q: Jackie’s Parts Shop recorded the following purchases and sales during the past year (see attached…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: Periodic Inventory System: Periodic inventory system is an arrangement of stock wherein refreshes…

Q: Coronado Company's record of transactions concerning part X for the month of April was as follows.…

A: LIFO is the method in which the inventory bought at the end has to be sold first.

Q: Use the following information to calculate Honest Tea, Inc.'s Cost of Goods Sold for the year. Note:…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

Q: Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25…

A:

Q: Bridgeport Company uses the gross profit method to estimate inventory for monthly reporting…

A: Calculating of inventory as a balancing figures in case of gross profit method , we need to prepare…

Q: Study the following data. Transactions for the month of June were: Purchases Sales June 1 (balance)…

A: The inventory valuation is based on different methods such as FIFO, LIFO, Weighted average, or…

Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…

A: Cost of goods sold means the total cost of our service which we are providing or  the product cost…

Q: Assume your organization has the following inventory changes during the year: Beginning…

A: Introduction:- The term inventory refers to both the raw materials utilised in manufacturing and the…

Q: For each of the following scenarios, determine the inventory amount that should be reported on the…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…

A: Cost to retail methods  is  simple method . This help them to find relationship between cost of…

Q: How do I prepare an income statement table?   At the end of Monty Department Store’s fiscal year…

A: Income Statement of the business is a useful financial statement which shows all income and expenses…

Q: Larkspur Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A:

Q: Click Computers's Merchandise Inventory account at year-end is showing a balance of $43,000. The…

A: The inventory shrinkage occurs when the physical count of inventory is less than the recorded value…

Q: Rams Inc reported the following amounts for the year: It uses periodic method Ending…

A: Cost of sales can be computed as follows, =Opening inventory level + Purchases made - Purchases…

Q: Given below is information about beginning inventory and purchases for the current year for Peterson…

A: Formula: Gross margin = Total sales - cost of goods sold

Q: Assume the beginning inventory as of January 1 consisted of 500 units that were purchased for $8.25…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies…

A: Number of units sold = 4,500 + 9,000 = 13,500  Number of units purchased = 10,000 + 6,000 = 16,000…

Q: Marilee's Electronics uses a periodic inventory system and the average cost retail method to…

A: The retail inventory technique seems to be an accounting method for estimating the worth of a…

Q: The perpetual inventory records of Penny Co. indicate that $415,000 of merchandise should be on hand…

A: Inventory as per books = $415,000 Physical actual inventory  $370,000 Shrinkage amount =…

Q: Freedman Company estimates that sales this year of $12,000 will be returned next year and customers…

A: When a sales return occurs, perpetual inventory system requires recognition of the inventory's…

Q: Based on the following data for the current year, what is the number of days' sales in inventory…

A: Answer) Calculation of Days’ Sales in Inventory Days’ Sales in Inventory = (Average Inventory/ Cost…

Q: Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise…

A: Journal entry is a record of financial transaction in the books of accounts maintained by the…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

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.