Problem 4-8 (AICPA Adapted) Valiant Company reported the following analysis of current. receivables at year-end: Trade accounts receivable Allowance for doubtful accounts Claim against shipper for goods lost in transit in November Selling price of unsold goods sent by Valiant on consignment at 150% of cost and not included in ending inventory Security deposit on lease of warehouse 2,000,000 ( 100,000) 300,000 600,000 200,000 Total 3,000,000 What total amount should be reported as current trade and other receivables? a. 2,200,000 b. 2,400,000 c. 2,300,000 d. 3,000,000

Problem 4-8 (AICPA Adapted) Valiant Company reported the following analysis of current. receivables at year-end: Trade accounts receivable Allowance for doubtful accounts Claim against shipper for goods lost in transit in November Selling price of unsold goods sent by Valiant on consignment at 150% of cost and not included in ending inventory Security deposit on lease of warehouse 2,000,000 ( 100,000) 300,000 600,000 200,000 Total 3,000,000 What total amount should be reported as current trade and other receivables? a. 2,200,000 b. 2,400,000 c. 2,300,000 d. 3,000,000

Name: Problem 4-8 (AICPA Adapted)Valiant Company reported the following ana
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Description: Problem 4-8 (AICPA Adapted)Valiant Company reported the following analysis of current.receivables at year-end:Trade accounts receivableAllowance for doubtful accountsClaim against shipper for goods lostin transit in NovemberSelling price of unsold g

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 39BE

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RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson 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 Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
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.
Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
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Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
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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.