Homework Help is Here – Start Your Trial Now!
Business
Accounting
B Pro 4 Pa-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March ar listed below. Duder uses the periodic inventory method. 8 Purchased merchandise on account, $15,000, terms 1/10, n/30. 11 Returned part of the purchase of March, $2.200, and received credit on account. 17 Purchased merchandise on account, $16,000, terms 2/10, n/30. 26 Paid invoice of March 17 in full. 27 Purchased merchandise on account, $36,000, terms 2/10, n/60. March Instructions (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions. (2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared at that time. (3) Describe how the various items would be shown in the financial statements. (c) Which of the two methods do you prefer and why? 5 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerning part WA6 for the month of September was as follows.

B Pro 4 Pa-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March ar listed below. Duder uses the periodic inventory method. 8 Purchased merchandise on account, $15,000, terms 1/10, n/30. 11 Returned part of the purchase of March, $2.200, and received credit on account. 17 Purchased merchandise on account, $16,000, terms 2/10, n/30. 26 Paid invoice of March 17 in full. 27 Purchased merchandise on account, $36,000, terms 2/10, n/60. March Instructions (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions. (2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared at that time. (3) Describe how the various items would be shown in the financial statements. (c) Which of the two methods do you prefer and why? 5 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerning part WA6 for the month of September was as follows.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.2P: Sales-related transactions The- following selected transactions were completed by Affordable...
See similar textbooks
icon
Related questions
Question
B Problems 3 P&-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March 4. ar listed below. Duder uses the periodic inventory method. 11 Returned part of the purchase of March, $2,200, and received credit on account. 17 Purchased merchandise on account, $16,000, terms 2/10, n/30. March 8 Purchased merchandise on account, $15,000, terms 1/10, n/30. 26 Paid invoice of March 17 in full. 27 Purchased merchandise on account, $36,000, terms 2/10, n/60. (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: Instructions (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions. (2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared at that time. (3) Describe how the various items would be shown in the financial statements. (c) Which of the two methods do you prefer and why? 25 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerning part WA6 for the month of September was as follows. Sales Purchases September 1 (balance on hand) 3 300@ $12.00 200@ 12.10 September 4 17 12 300@ 12.25 27 300@ 12.30 22 500@ 12.30 300@ 12.40 Instructions (a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual in- ventory records are kept in units only. Carry unit costs to the nearest cent. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average cost. (b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each with- drawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry average unit costs to four decimal places. 25 P8-5B (Compute FIFO, LIFO, and Average Cost) Some of the information found on a detail inventory card for Arctic Inc. for the first month of operations is as follows. Received Issued, No. of Units Balance, No. of Units Date No. of Units Unit Cost March 1. $6.00 2,000 2,500 1,800 to 00 9. 8. 6.05 12 1,400 6.20 1,400 009 2,400 6.25 22 to w00 200 1,800 3,300 2,100 6.50 31 1,200
Transcribed Image Text:B Problems 3 P&-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March 4. ar listed below. Duder uses the periodic inventory method. 11 Returned part of the purchase of March, $2,200, and received credit on account. 17 Purchased merchandise on account, $16,000, terms 2/10, n/30. March 8 Purchased merchandise on account, $15,000, terms 1/10, n/30. 26 Paid invoice of March 17 in full. 27 Purchased merchandise on account, $36,000, terms 2/10, n/60. (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: Instructions (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions. (2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared at that time. (3) Describe how the various items would be shown in the financial statements. (c) Which of the two methods do you prefer and why? 25 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerning part WA6 for the month of September was as follows. Sales Purchases September 1 (balance on hand) 3 300@ $12.00 200@ 12.10 September 4 17 12 300@ 12.25 27 300@ 12.30 22 500@ 12.30 300@ 12.40 Instructions (a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual in- ventory records are kept in units only. Carry unit costs to the nearest cent. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average cost. (b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each with- drawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry average unit costs to four decimal places. 25 P8-5B (Compute FIFO, LIFO, and Average Cost) Some of the information found on a detail inventory card for Arctic Inc. for the first month of operations is as follows. Received Issued, No. of Units Balance, No. of Units Date No. of Units Unit Cost March 1. $6.00 2,000 2,500 1,800 to 00 9. 8. 6.05 12 1,400 6.20 1,400 009 2,400 6.25 22 to w00 200 1,800 3,300 2,100 6.50 31 1,200
Expert Solution
steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for discounts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS