Does the entry below look correct for the following line item? The Grocery Store bought $400,000 of cookies on account. Mr. Burns was still angry that his casino got shutdown so there were no discount terms. The cost of the inventory was $200,000 1-May Accounts Receivable- Grocery Store $ 400,000 Sales Revenue $ 400,000 Cost of Goods Sold $ 200,000 Inventory- cookie dough $ 200,000

Does the entry below look correct for the following line item? The Grocery Store bought $400,000 of cookies on account. Mr. Burns was still angry that his casino got shutdown so there were no discount terms. The cost of the inventory was $200,000 1-May Accounts Receivable- Grocery Store $ 400,000 Sales Revenue $ 400,000 Cost of Goods Sold $ 200,000 Inventory- cookie dough $ 200,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 1CP: Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square...

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Tillman, Inc, bills its only branch for merchandise shipments at a markup of 20% above home office cost .the branch sells the merchandise at markup of 10% above billed price. Shortly after the close of business on January 20, 1999, some of the branch merchandise was destroyed by fire. The following additional information is available: Inventories, Jan. 1 (at billed prices from home office) 20,000$ Inventories Jan. 20, of merchandise not destroyed (at selling prices) 6,150 Shipments from home office Jan. 1 to 20 (at billed prices) 60,000 Sales from Jan. 1 to 20 48,000 Sales returns from Jan. 1 to 28 (merchandise actually returned) 2,000 Sales allowances from Jan. 1 to 20 (price adjustments) 700 Compute the estimated cost (to the home office) of the merchandise destroyed by fire at the branch of Tillman on January 20, 1999.
Is this journal entry correct for the line item, column #3 is just notes- February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000. Mr. Burns offered terms 2/20, n40. The cost of merchandise sold was $150,000 20-Feb Accounts Receivable- Candy Store $ 294,000 2/20 n40 Sales Revenue $ 294,000 Cost of Goods Sold $ 150,000 COGS $150K Inventory- cookie dough $ 150,000
esther has a small store. last month, she purchased merchandise costing p75,000.00, for which she paid freight of p7,500.00. she sold 60% of the merchandise for p68,000.00, after spending for various expenses totalling p13,000.00. she also paid p2,000.00 for interest on money she borrowed for her store. a. how much was her cost of sales? b. how much gross profit did she make? c. how much operating profit did she make? d. what was her net profit?
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July 2 Sold $60,000 of merchandise to Odom Jewels on account. July 3 Sold $13,000 of merchandise to Brennan Crystals, which paid by credit card. The credit card company charges Woodshine a fee of 3% on credit card sales. July 16 Odom Jewels paid the balance of what it owed for the purchase on July 2. July 17 Sold $25,000 of merchandise to Powell Stones on account. July 19 Powell Stones noticed that some of the merchandise received was damaged, so it returned $4,000 worth of merchandise to Woodshine. July 30 Powell Stones paid the balance of what it owed for the purchase on July 17. Woodshine Jewelry sells to retailers who then resell the products. Woodshine does not offer sales discounts for early payment; it asks that customers pay in full within 15 days or at the point of sale with a credit card. The company had the following selected transactions during July: LOADING... (Click the icon…
Tri-State Bank and Trust is considering giving Concord Company a loan. Before doing so, management decides that further discussions with Concord’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $345,000. Discussions with the accountant reveal the following. 1. Concord sold goods costing $32,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Concord FOB destination on December 27 and were still in transit at year-end. 3. Concord received goods costing $23,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. 4. Concord sold goods costing $34,000 to Jesse…
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