Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000. During the first week in January 2019, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Purchased 30 modems and 70 printers from Sharp. The total cost of these machines was $31,000, terms 5/10, n/60. Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total sales price was $16,000, terms 8/10, n/90. The total cost of these 30 units to CPI was $7,800 (net of the purchase discount). CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions Prepare journal entries to record these transactions, assuming that CPI uses a perpetual inventory system.
Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000. During the first week in January 2019, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Purchased 30 modems and 70 printers from Sharp. The total cost of these machines was $31,000, terms 5/10, n/60. Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total sales price was $16,000, terms 8/10, n/90. The total cost of these 30 units to CPI was $7,800 (net of the purchase discount). CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions Prepare journal entries to record these transactions, assuming that CPI uses a perpetual inventory system.
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
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Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000. During the first week in January 2019, the company made only one purchase and one sale. These transactions were as follows:
Jan. 2 Purchased 30 modems and 70 printers from Sharp. The total cost of these machines was $31,000, terms 5/10, n/60.
Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total sales price was $16,000, terms 8/10, n/90. The total cost of these 30 units to CPI was $7,800 (net of the purchase discount).
CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for
Instructions
- Prepare
journal entries to record these transactions, assuming that CPI uses a perpetual inventory system.
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