es of merchandise include all brands, whether high-end or low-end product, catering to both ind nd institutional users of the products. During the year, selected transactions relating to its purcha low: urchases of Bro printers from Metro Pacific Company urchases of Howlet printers from Ayaling Corporation urchases of ink cartridges from Metro Pacific Company erms of Metro Pacific Company and Ayaling Corporation are as follows: etro Pacific Company- 3/10, net/30 yaling Corporation-2/10, n/30 uring the year, the company received credit memoranda for defective merchandise returned as ll returns and allowances took place within five days of purchases and prior to any payment of a etro Pacific Company yaling Corporation otal cash discounts taken during the year amounted to P22,180.
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- Parris Company has shipped $20,000 of goods to Harlow Co., and Harlow Co. has arranged to sell the goods for Parris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory?Zumiez Inc. is a leading action sports retailer, focusing on skateboarding, snowboarding, surfing,and BMX, selling some of its merchandise under the Blue Tomato brand. The company’s financialstatement notes reported that “Merchandise inventories may include items that have been writtendown to our best estimate of their net realizable value. Our decisions to write-down our merchandise inventories are based on their current rate of sale, the age of the inventory, the profitability ofthe inventory and other factors.” What ratios and financial measure(s) discussed in this chapter isthe company likely using to monitor . . .a. “. . . the current rate of sale”?b. “. . . the age of the inventory”?c. “. . . the profitability of the inventory”?Sanchez Company is a wholesaler of bakery equipments. Beginning of the current year, the entity's inventory consisted of 90 bakery equipments priced at P1,000 each, and during the current year with the following transactions; 1. purchased 700 bakery equipments on account at P1,000 each 2. returned 60 defective bakery equipments to supplier and received credit. 3. paid 630 of the bakery equipments purchased. 4. sold 600 bakery equipments at P2,000 each 5. received 30 bakery equipments returned by a customer and gave credit. 6. received cash for 520 of the bakery equipments sold. 7. Physical count at year-end revealed 70 units on hand Required; a. prepare journal entries, including adjustments to record the above transactions assuming the company uses the periodic system and perpetual system b. determine the cost of sales under each inventory system.
- Vangie Company, a merchandising concern entity, has the following transactions during 2020: Purchased merchandise amounting to P100,000. Terms: 2/10, n/30. Sold merchandise to various customers, P125,000. Cost of merchandise sold, P65,000. Approved and accepted the return of merchandise from customer due to wrong delivery, P12,000. The cost of the inventory is P8,000. Paid freight for merchandise sold, P12,000. Returned merchandise to suppliers due to damages, P15,000. Acquired merchandise from various suppliers, P180,000. Terms: less 10%, 2/10, n/30. Paid accounts payable to various suppliers amounting to P90,000 less 2% discount Sold merchandise to various customers, P90,000. Cost of merchandise sold, P55,000. Received proceeds from accounts receivable collection amounted to P100,000, net of 2% discounts. Paid freight for merchandise purchased, P18,000. Requirements: Record the above transactions using Periodic Inventory System Perpetual Inventory SystemMogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 20% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $95,000 to Ski Outfit. By the end of the year, $72,000 of the merchandise has been sold to customers for a total of $100,600. What amount of inventory will Mogul report at year end?Assume the following information for Fruitful Proprietary Limited. for the year ended December 31, 2011: Sales R5,160 Cost of goods manufactured for the year R1,800 Beginning finished goods inventory R834 Ending finished goods inventory R593 Selling and administrative expenses R424 What is the cost of goods sold for the year ended 31 December 2011?
- The transactions listed below are typical of those involving New Books Incorporated and Readers’ Corner. New Books is a wholesale merchandiser and Readers’ Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers’ Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31. New Books sold merchandise to Readers’ Corner at a selling price of $575,000. The merchandise had cost New Books $425,000. Two days later, Readers’ Corner complained to New Books that some of the merchandise differed from what Readers’ Corner had ordered. New Books agreed to give an allowance of $12,500 to Readers’ Corner. Readers’ Corner also returned some books, which had cost New Books $2,500 and had been sold to Readers’ Corner for $4,000. Just three days later, Readers’ Corner paid New Books, which settled all amounts owed.…Vangie Company, a merchandising concern entity, has the following transactions during 2020:a. Purchased merchandise amounting to P100,000. Terms: 2/10, n/30.b. Sold merchandise to various customers, P125,000. Cost of merchandise sold, P65,000.c. Approved and accepted the return of merchandise from customer due to wrong delivery,P12,000. The cost of the inventory is P8,000.d. Paid freight for merchandise sold, P12,000.e. Returned merchandise to suppliers due to damages, P15,000.f. Acquired merchandise from various suppliers, P180,000. Terms: less 10%, 2/10, n/30.g. Paid accounts payable to various suppliers amounting to P90,000 less 2% discount taken.h. Sold merchandise to various customers, P90,000. Cost of merchandise sold, P55,000.i. Received proceeds from accounts receivable collection amounted to P100,000, net of 2%discounts.j. Paid freight for merchandise purchased, P18,000.Requirements:1. Record the above transactions usinga. Perpetual Inventory SystemEsperado Furnishings are retailers who purchase and sell household furnishings, including tablelamps. The business uses a perpetual inventory system and adjusts cost of goods sold for anyshortage or excess inventory. The business began the last quarter of 2018 with merchandiseinventory of 10 pairs of “Italia” table lamps at a total cost of $168,200.The following transactions, relating to the “Italia” brand were completed during the quarter:October 5 Purchased 15 pairs of lamps at a cost of $17,020 per pair.October 14 Sold 18 pairs of lamps to Muller Furnishings at $22,250 per pairOctober 22 Purchased 24 pairs at a cost of $18,175 per pair but the supplier gave a 4% quantitydiscount.November 10 Sold 15 pairs of lamps to Orion Household Ltd and 10 pairs to Brown’s Furnishingswhich yielded total sales revenue of $589,750.November 12 Owing to an increased demand for this product, 30 pairs of lamps were purchasedon account at a cost of $17,612 per pair. In addition, Esperado paid $288…
- Esperado Furnishings are retailers who purchase and sell household furnishings, including table lamps. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. The business began the last quarter of 2018 with merchandise inventory of 10 pairs of “Italia” table lamps at a total cost of $168,200. The following transactions, relating to the “Italia” brand were completed during the quarter: October 5 Purchased 15 pairs of lamps at a cost of $17,020 per pair. October 14 Sold 18 pairs of lamps to Muller Furnishings at $22,250 per pair October 22 Purchased 24 pairs at a cost of $18,175 per pair but the supplier gave a 4% quantity discount. November 10 Sold 15 pairs of lamps to Orion Household Ltd and 10 pairs to Brown’s Furnishings which yielded total sales revenue of $589,750. November 12 Owing to an increased demand for this product, 30 pairs of lamps were purchased on account at a cost of $17,612 per pair. In addition, Esperado…Esperado Furnishings are retailers who purchase and sell household furnishings, including table lamps. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. The business began the last quarter of 2018 with merchandise inventory of 10 pairs of “Italia” table lamps at a total cost of $168,200. The following transactions, relating to the “Italia” brand were completed during the quarter: October 5 Purchased 15 pairs of lamps at a cost of $17,020 per pair. October 14 Sold 18 pairs of lamps to Muller Furnishings at $22,250 per pair October 22 Purchased 24 pairs at a cost of $18,175 per pair but the supplier gave a 4% quantity discount. November 10 Sold 15 pairs of lamps to Orion Household Ltd and 10 pairs to Brown’s Furnishings which yielded total sales revenue of $589,750. November 12 Owing to an increased demand for this product, 30 pairs of lamps were purchased on account at a cost of $17,612 per pair. In addition, Esperado…Esperado Furnishings are retailers who purchase and sell household furnishings, including table lamps. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. The business began the last quarter of 2018 with merchandise inventory of 10 pairs of “Italia” table lamps at a total cost of $168,200. The following transactions, relating to the “Italia” brand were completed during the quarter: October 5 Purchased 15 pairs of lamps at a cost of $17,020 per pair. October 14 Sold 18 pairs of lamps to Muller Furnishings at $22,250 per pair October 22 Purchased 24 pairs at a cost of $18,175 per pair but the supplier gave a 4% quantity discount. November 10 Sold 15 pairs of lamps to Orion Household Ltd and 10 pairs to Brown’s Furnishings which yielded total sales revenue of $589,750. November 12 Owing to an increased demand for this product, 30 pairs of lamps were purchased on account at a cost of $17,612 per pair. In addition, Esperado…