ictoria Corporation uses the perpetual inventory method. On August 1, it purchased P20,000 of inventory, terms 2/10, n/30. On August 3, Victoria returned goods that cost P2,000. On August 9, Victoria paid the supplier. Question: On August 9, Victoria should credit A. Purchase discounts for P400 B. inventory for P400 C. purchase discounts for P360 D. inventory for P360

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Hirsch Company buys inventory for $30,000 on terms of 1/10, n/30. It pays within the discount period.   Required: 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Hirsch uses a periodic inventory system. 2. Prepare the journal entries to record the purchase and payment under both the (a) gross price and the (b) net price methods. Assume that Hirsch uses a perpetual inventory system. CHART OF ACCOUNTS Hirsch Company General Ledger   ASSETS 111 Cash 121 Accounts Receivable 131 Inventory 142 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation   LIABILITIES 211 Accounts Payable 224 Interest Payable 231 Salaries Payable 241 Accrued Loss on Purchase Commitment   EQUITY 311 Common Stock 331 Retained Earnings   REVENUE 411 Sales Revenue   EXPENSES 500 Cost of Goods Sold 510 Purchases 511…

On October 23, Johnson Company 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 Johnson Company's purchases if it pays on October 31.View Solution:

Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Journalizing purchase transactions—periodic inventory system Consider the following transactions for Garman Packing Supplies: Requirements Journalize the purchase transactions assuming Carman Packing Supplies uses the periodic inventor)'system. Explanations are not required. What is the amount of net purchases?

A company purchased inventory for $1,400 per unit. The company later sold one unit of the inventory for cash of $2,100. Under the perpetual inventory​ system, which accounts will be debited to record the​ sale?

An item was shipped from a supplier under FOB shipping point. The invoice in the amount of $2,000 included payment terms of 2/10, n/30. When the invoice was paid, a purchase discount in the amount of $40 was taken. Other details relating to the purchase of this item included the following: shipping charges of $300, storage fees of $50, and insurance premium of $100. The cost of this inventory item is $1,960 $2,410 $2,401 $2,404

On July 1, Hernandez, Inc. purchased merchandise for $2,500, with terms of 1/10, n/30. On July 5, the firm returned $1 ,000 of the merchandise to the seller. Payment of the account occurred on July 8. Hernandez uses the perpetual inventory system. a. Prepare the journal entries for July 1, July 5, and July 8. b. Assuming that the account was paid on July 14, prepare the journal entry for payment on that date.

Journalize sales transactions. BE5.4 (LO 3), AP Prepare the journal entries to record the following transactions on Borst Company's books using a perpetual inventory system. a. On March 2, Borst Company sold $800,000 of merchandise on account to McLeena Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000. b. On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $94,000. c. On March 12, Borst Company received the balance due from McLeena Company. Journalize purchase transactions.

Mayfair Company completed the following transactions and uses a perpetual Inventory system. June 4 Sold $2,700 of merchandise on credit (that had cost $1,600) to Natara Morris, terms n/15. June 5 Sold $30,000 of merchandise (that had cost $18,000) to customers who used their Zisa cards. Zisa charges a 14 fee. June 6 Sold $21,000 of merchandise (that had cost $12,600) to customers who used their Access cards. Access charges a 3% fee. June 8 Sold $18,000 of merchandise (that had cost $2,900) to customers who used their Access cards. Access charges a 2 fee. June 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $2,160 balance in McKee's account was from a credit sale last year. June 18 Received Morris's check in full payment for the June 4 purchase. Required: Prepare journal entries to record the preceding transactions and events. View transaction list Journal entry worksheet Sold $2,700 of merchandise on credit to Natara Morris, terms n/15. Note:…