Problem 6-9B Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8) [The following information applies to the questions displayed below.] At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the month of June. June June June June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750. June 18 Receive payment on account from customers, $3,100. June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,850, that had a cost of $3,150. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June 28 Pay Sound Unlimited in full. 2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45. 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310. 8 Return defective radios to Radio World and receive credit, $400. Problem 6-9B Part 1 Required: 1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) X Answer is complete but not entirely correct.
Problem 6-9B Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8) [The following information applies to the questions displayed below.] At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the month of June. June June June June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750. June 18 Receive payment on account from customers, $3,100. June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,850, that had a cost of $3,150. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June 28 Pay Sound Unlimited in full. 2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45. 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310. 8 Return defective radios to Radio World and receive credit, $400. Problem 6-9B Part 1 Required: 1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) X Answer is complete but not entirely correct.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.24MCE
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Topic Video
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Transcribed Image Text:!
Required information
6
June 11
Cost of Goods Sold
2,750 X
Inventory
2,750
7
June 18
Cash
3,100
Accounts Receivable
3,100
8
June 20
Purchases
3,350
Accounts Payable
3,350
9
June 23
Cash
4,850
Sales Revenue
4,850
10
June 23
Cost of Goods Sold
3,150
Inventory
3,150
11
June 26
Accounts Payable
500
Inventory
500
12
June 28
Accounts Payable
3,350
Inventory
67 X
Cash
3,283 (х
![!
Required information
Problem 6-9B Record transactions and prepare a partial income statement using a periodic inventory
system (LO6-8)
[The following information applies to the questions displayed below.]
At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the
month of June.
2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45.
4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310.
8 Return defective radios to Radio World and receive credit, $400.
June
June
June
June 10 Pay Radio World in full.
June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750.
June 18 Receive payment on account from customers, $3,100.
June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30.
June 23 Selll radios to customers for cash, $4,850, that had a cost of $3,150.
June 26 Return damaged radios to Sound Unlimited and receive credit of $500.
June 28 Pay Sound Unlimited in full.
Problem 6-9B Part 1
Required:
1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. (If no entry is required for a particular
transaction, select "No Journal Entry Required" in the first account field.)
X Answer is complete but not entirely correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc35bfef-1e1d-4e62-a745-481127990680%2F1816d441-e91b-4fd6-96de-c98a092af534%2Fdpp92kl_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 6-9B Record transactions and prepare a partial income statement using a periodic inventory
system (LO6-8)
[The following information applies to the questions displayed below.]
At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the
month of June.
2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45.
4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310.
8 Return defective radios to Radio World and receive credit, $400.
June
June
June
June 10 Pay Radio World in full.
June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750.
June 18 Receive payment on account from customers, $3,100.
June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30.
June 23 Selll radios to customers for cash, $4,850, that had a cost of $3,150.
June 26 Return damaged radios to Sound Unlimited and receive credit of $500.
June 28 Pay Sound Unlimited in full.
Problem 6-9B Part 1
Required:
1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. (If no entry is required for a particular
transaction, select "No Journal Entry Required" in the first account field.)
X Answer is complete but not entirely correct.
Expert Solution
Step 1
|
>The inventory transactions are recorded either using a perpetual method or periodic method. |
|
>Under perpetual method, the inventory records are regularly updated. |
|
--The cost of goods sold is recorded after each sales transaction. |
|
--Inventory account is used to record purchase, purchase related cost, purchase discounts, returns and allowances. |
|
>Under periodic method, the inventory records are updated at period end. |
|
--The cost of goods sold is NOT recorded after each sales transaction. |
|
--Inventory account is NOT used to record purchase, purchase related cost, purchase discounts, returns and allowances. |
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