E6-2 (Algo) Inferring Merchandise Purchases [LO 6-2] Morgan & Cook, is a specialty retailer that operates stores selling clothes under various trade names. Assume that you are employed as a stock analyst and your boss has just completed a review of Morgan & Cook, for the first quarter of 2019. She provided you with her notes, but they are missing some information that you need. Her notes show the inventory for Morgan was $2,380 million at the end of the quarter and $2,270 million at the beginning of the quarter. Net Sales for the quarter were $4,400 million. Gross Profit was $1,620 million and Net Income was $367 million. Required: Determine the Cost of Goods Sold and cost of purchases for the first quarter. (Enter your answers in millions.) Cost of Goods Sold Purchases Amount million million

E6-2 (Algo) Inferring Merchandise Purchases [LO 6-2] Morgan & Cook, is a specialty retailer that operates stores selling clothes under various trade names. Assume that you are employed as a stock analyst and your boss has just completed a review of Morgan & Cook, for the first quarter of 2019. She provided you with her notes, but they are missing some information that you need. Her notes show the inventory for Morgan was $2,380 million at the end of the quarter and $2,270 million at the beginning of the quarter. Net Sales for the quarter were $4,400 million. Gross Profit was $1,620 million and Net Income was $367 million. Required: Determine the Cost of Goods Sold and cost of purchases for the first quarter. (Enter your answers in millions.) Cost of Goods Sold Purchases Amount million million

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.12E: Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete...

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Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions): a. Determine for bom companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. b. Compare and interpret the inventory metrics computed in (a).
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
BE5-14 Prepare the journal entries to record these transactions on Shabani Company's books using a periodic inventory system. (a) On March 2, Shabani Company purchased $900,000 of merchandise from Ballas Com- pany, terms 2/10, n/30. (b) On March 6, Shabani Company returned $110,000 of the merchandise purchased on March 2. (c) On March 12, Shabani Company paid the balance due to Ballas Company.
27) On 7th April,2019, Apple mart sold RO 84,000 with credit terms of 3/10, n30 and the Original cost amounted to RO 69,000. What is the journal entry to record the Cost of goods sold in the books of seller under Perpetual inventory system? a. Cost of goods sold RO 84,000 Dr / Merchandise inventory RO 84,000 Cr b. Cost of goods sold RO 69,000 Dr / Merchandise inventory RO 69,000 Cr c. Account receivable RO 84,000 Dr / Sales revenue RO 84,000 Cr d. Account receivable RO 69,000 Dr / Sales revenue RO 69,000 Cr
E5-4 On June 10, Diaz Company purchased $8,000 of merchandise from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Dam- aged goods totaling $300 are returned to Taylor for credit on June 12. The fair value of these goods is $70. On June 19, Diaz pays Taylor Company in full, less the purchase dis- count. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Diaz Company. (b) Prepare separate entries for each transaction for Taylor Company. The merchandise purchased by Diaz on June 10 had cost Taylor $4,800. E5-5 Presented below are transactions related to R. Humphrey Company. 1. On December 3, R. Humphrey Company sold $570,000 of merchandise to Frazier Co., terms 1/10, n/30, FOB destination. R. Humphrey paid $400 for freight charges. The cost of the merchandise sold was $350,000. 2. On December 8, Frazier Co. was granted an allowance of $20,000 for merchandise…
E9-1 Accounts Payable and Cash Discounts On January 4, 2019, Dunbar Company purchased, on credit, 2,500 television sets at $800 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining 80% on February 1. Required: 1. Prepare the journal entries on Dunbar Company’s books, assuming that it uses the net price method to record its merchandise. (Dunbar uses a perpetual inventory system.) 2. Next Level Discuss the conceptual advantage of the net price method compared to the gross price method.
MM Co. has the following information pertaining to its merchandise inventory as of December 31, 2020: Inventory on Hand (including inventory on consignment of P20,000) P200,000 Inventory purchased with the right of return P100,000 Merchandise purchased in transit, FOB shipping point P160,000 Merchandise sold in transit, FOB destination P247,000 Merchandise not in warehouse, held by the consignee P183,000. What amount should MM Co. report as the value of its inventory in its 2020 balance sheet? A. P749,000 B. P760,000 C. P770,000 D. P876,000 E. answer not given
5.2 Mary has a general dealer business and uses the periodic inventory system to keep records of buying and selling goods. The following information was extracted from the accounting records for financial year ended 30 June 2020.List of selected accounts at 30 June 2021 RTrading inventory : 1 July 2020 225 000Purchases 916 400Sales 1 668 800Purchases returns 17 300Sales returns 20 700Settlement discounts received 32 600Settlement discounts granted 17 900Transport inwards (from suppliers) 45 200Transport outwards (to customers) 23 100Additional information:1. Trading inventory at 30 June 2021 was taken and valued at R203 400.2. Neil took inventory worth R18 100 for his personal use. This has not been recorded in the above accounting records.3. Insurance on goods transported from suppliers for R7 400 is also not yet included in the above information.Required:Prepare only the trading section of the Statement of profit or loss and othercomprehensive income for Mary’s General Dealers for…
E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,500 from Diamond Inc. with terms 2/12, n/45. 5 Returned goods costing $1,300 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,200 with terms 2/12, n/45. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
17) Magnum mart purchased goods on 4th January, 2019 for RO 86,000 on credit under the payment terms 2/10, n/30 and paid cash on 12th January 2019. How would you record this in the books of buyer under Perpetual inventory system? a. Account payable RO 86,000 Dr / Cash RO 86,000 Cr b. Cash RO 84,280 Dr / Merchandise inventory RO 1,720 Dr /Account payable RO 86,000 Cr c. Cash RO 86,000 Dr / Account payable RO 86,000 Cr d. Account payable RO 86,000 Dr / Merchandise inventory RO 1,720 Cr / Cash RO 84,280 Cr Clear my choice
ALLIANCE GLOBAL GROUP INC. PLEASE HELP ME EXPLAIN THE RECEIVABLES TURNOVER AND THE DAYS TO COLLECT IN THE YEAR 2020 Net Sales Revenue 124555.38 Days 365 Ave. Net Receivables 88640.47 Receivable Turnover 1.41 Receivable turnover 1.41 Days to Collect 258.87 or 259 PLEASE HELP ME EXPLAIN THE INVENTORY TURNOVER AND THE DAYS TO SELL IN THE YEAR 2020 Cost of Goods Sold 75568.32 Days 365 Average Inventory 70,012.93 Inventory Turnover 1.08 Inventory Turnover 1.08 Days to Sell 337.96 or 338
On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Franz Company received the goods and Emily Corporation's invoice on June 17. On June 24, Franz Company sent the payment to Emily Corporation, which Emily Corporation received on June 25. Both Emily Corporation and Franz Company use the periodic inventory system. (Disregard effects of VAT. Use the account titles "Freight In" and "Freight Out" for transportation costs.)A. Shipping terms are FOB Shipping Point, freight collect. Franz Company paid the shipping costs on June 17 and remitted payment on June 24. Question 1. 1. Prepare the journal entry for Emily Corporation to record the sale.