Kaanapali Merchandising had the following transactions during November: Nov 1 Beginning inventory was 40 units valued at $50 per unit. Nov 5 Purchased 160 units of merchandise on account for $4,320, terms n/15, FOB shipping point. Nov 9 Paid transportation cost on the Nov 5 purchase, $480. Nov 10 Returned two units of defective merchandise purchased on Nov 5. Nov 11 Sold 60 units for $100 per unit on account. Nov 15 Paid for the Nov 5 purchase, less the return. Nov 20 Sold 20 units for $100 per unit on account. Required: Assuming FIFO and that the perpetual inventory system is used, prepare the journal entries to record the above transactions.
Kaanapali Merchandising had the following transactions during November: Nov 1 Beginning inventory was 40 units valued at $50 per unit. Nov 5 Purchased 160 units of merchandise on account for $4,320, terms n/15, FOB shipping point. Nov 9 Paid transportation cost on the Nov 5 purchase, $480. Nov 10 Returned two units of defective merchandise purchased on Nov 5. Nov 11 Sold 60 units for $100 per unit on account. Nov 15 Paid for the Nov 5 purchase, less the return. Nov 20 Sold 20 units for $100 per unit on account. Required: Assuming FIFO and that the perpetual inventory system is used, prepare the journal entries to record the above transactions.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1MP
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