FDN Trading uses periodic inventory system. On November 15, 2021, FDN sol merchandise to Rossi Company for P118,000 on terms 3/10, 2/20, n/30. On November 18, 2021, Rossi returned to FDN goods worth P8,700 due to wrong specification. On November 25, 2021, Rossi made partial payment of P36,000 December 4, 2021, Rossi paid its account in full. How much should FDN Tradim credit to Sales Revenue on November 15?

FDN Trading uses periodic inventory system. On November 15, 2021, FDN sol merchandise to Rossi Company for P118,000 on terms 3/10, 2/20, n/30. On November 18, 2021, Rossi returned to FDN goods worth P8,700 due to wrong specification. On November 25, 2021, Rossi made partial payment of P36,000 December 4, 2021, Rossi paid its account in full. How much should FDN Tradim credit to Sales Revenue on November 15?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Schmidt Company began operations on January 1, 2018, and used the LIFO inventory method for both financial reporting and income taxes. However, at the beginning of 2020, Schmidt decided to switch to the average cost inventory method for financial and income tax reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the LIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Schmidt is subject to a 21% income tax rate in all years; it pays all income taxes payable in the next quarter. Assume that any deferred tax liability was paid in the subsequent year. Schmidt had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Schmidt had cash of 15,600, inventory of 34,000, other assets of 76,000, income taxes payable of 4,200, and accounts payable of 3,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in method at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.
A business A uses periodic inventory system. On Nov 15, 2021, the business A sold merchandise to business B for $149,000 on terms 3/10, 2/20, n/30. On Nov 18, 2021, business B returned to business A goods worth $8,700 due to wrong specification. On Nov 15, 2021, business B made partial payment of $39,000. On Dec 4, 2021, business B paid its account in full. How much should business A credit to Sales Revenue on Nov 15?
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. Prepare the entry for Emily Corporation to record the cash receipt.
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.
What amount should be presented as a deduction from cost of goods sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory write-down before any adjustment of P300,000. The following information is made available: Product A Product B Product C Product D Product E Sales Price P1,800,000 P1,650,000 P1,700,000 P1,500,000 P1,600,000 825,000 1,050,000 1,400,000 1,000,000 Cost of Goods Sold 950,000 780,000 1,200,000 1,275,000 1,500,000 1,350,000 1,175,000 1,400,000 650,000 925,000 1,200,000 1,325,000 700,000 1,050,000 1,200,000 Historical Cost Replacement Cost Net Realizable Value 900,000
What amount should be presented as a deduction from cost of goods sold? IJUN Company sells five kinds of products and reports its inventory at Lower of Cost and Net Realizable Value. On December 31, 2021, IJUN reported an ihentory of P5,500,000 and an allowance for inventory write-down before any adjustment of P300,000. The following information is made available Product A P1,800,000 P1,650 000 P1,700,000 P1,500.000 P1.600,000 950,000 780.000 1,200,000 1275.000 1,500,000 1,350 000 1.175.000 1400 000 Product B Product C Product D Product E Sales Price Cost of Goods Sold Historical Cost 825.000 650.000 1.050 000 1.400.000 1.000 000 925.000 1 200,000 1325 000 700,000 1.050,000 1.200,000 900 000 Replacement Cost Net Realizable Value Your answer
On November 1, 2021, FDN Trading sold merchandise to ABC Trading worth P43,000 with credit term of 1/10, n/30 under freight term FOB Destination. The cost of the freight of P1,200 was paid by FDN. On November 3, ABC Trading returned some defective merchandise worth P4,300 and on the following day, made a partial payment of P14,000. How much is the final amount collected by FDN Trading assuming that collection is made within the discount period?
On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were net 30, FOB shipping point. The merchandise was shipped on December 31, 2019, and arrived at Ysa Inc. on January 5, 2020. Due to a clerical error, the sale was not recorded until January 2020 and the merchandise sold at a 25% markup on cost was included in inventory on December 31, 2019. What was the effect of the errors on cost of goods sold for 2019? A. understated by 600,000B. overstated by 600,000C. understated by 750,000D. overstated by 750,000
On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were net 30, FOB shipping point. The merchandise was shipped on December 31, 2019, and arrived at Ysa Inc. on January 5, 2020. Due to a clerical error, the sale was not recorded until January 2020 and the merchandise sold at a 25% markup on cost was included in inventory on December 31, 2019. What was the effect of the errors on sales for 2019?A. Overstated by 750,000B. Overstated by 600,000 C. Understated by 750,000D. Understated by 600,000
On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were net 30, FOB shipping point. The merchandise was shipped on December 31, 2019, and arrived at Ysa Inc. on January 5, 2020. Due to a clerical error, the sale was not recorded until January 2020 and the merchandise sold at a 25% markup on cost was included in inventory on December 31, 2019. What was the net effect of the errors on retained earnings?A. No EffectB. Understated by 150,000C. Understated by 1,350,000 D. Overstated by 150,000