In September 20x1, DEF Co. consigned 3,200 books costing P60 and retailing for P100 each to GHI Co., debiting Accounts Receivable and crediting Sales for the retail sales price. Freight cost of P3,200 was debited to Freight Expenses by the consignor. On September 30, 20x1, DEF Co. received from GHI Co. the amount of P142,020 in full settlement of the balance due, and Accounts Receivable was credited for this amount. The consignor deducted a commission of P20 for each book sold, a total of P180 for delivery expenses and a total of P200 for advertising expense. How many books were actually sold by GHI. Co.? 1,424 1,780 2,064 3,200

In September 20x1, DEF Co. consigned 3,200 books costing P60 and retailing for P100 each to GHI Co., debiting Accounts Receivable and crediting Sales for the retail sales price. Freight cost of P3,200 was debited to Freight Expenses by the consignor. On September 30, 20x1, DEF Co. received from GHI Co. the amount of P142,020 in full settlement of the balance due, and Accounts Receivable was credited for this amount. The consignor deducted a commission of P20 for each book sold, a total of P180 for delivery expenses and a total of P200 for advertising expense. How many books were actually sold by GHI. Co.? 1,424 1,780 2,064 3,200

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 11RE: Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year,...

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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
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Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.