purchase discount
Q: Define Discount Rate.
A: A discount rate is rate which is used to bring future value of cash flow to the present value.It is…
Q: General entry purchase return
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: 1. Research on the meaning discount management, and in your own understanding base on your research,…
A: The main purpose of discount management is agreement between you and your supplier with regard to…
Q: Journalizing Purchases Transactions
A: Above all purchase transactions are on Credit. journal entries will be as follows.
Q: perpetual inventory
A: Perpetual inventory system is an inventory tracking system in which sales and purchases are recorded…
Q: What is the LIFO retail method?
A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…
Q: the different types of purchasing procedures
A: A purchase process is a formal and systematic process of purchasing goods and service by an…
Q: purchase price
A: Purchase price = Net assets taken over - Required gain
Q: Inventory tumover
A: Inventory turnover ratio = Cost of goods sold/((Opening inventory + Closing inventory)/2)
Q: reimbursement plan
A: Those Expenses will be reimbursed by Business to their Employees which are related to business. In…
Q: Explain purchase accounting
A: Purchase accounting means any premium paid by bidder in excess of the value of books of aims assets…
Q: e discount rates of plement method.
A: Introduction: Net price factor is a method of business promotion that is used by companies in order…
Q: FOB shipping point
A: Under FOB Shipping point transfer of the title of goods is transferred to the buyer by the seller as…
Q: Define Purchase discounts.
A: Purchase discounts: The sellers offer a reduction in purchase price on initial purchases, to…
Q: Differentiate between a purchase requisition and a purchase order.
A: Difference between purchase requisition and purchase order The difference between the purchase…
Q: а. buy a dollar call
A: Step 1 A currency option is a financial arrangement that offers the buyer the right, but not the…
Q: Define dealer market
A: Answer: Usually, secondary market is a place in which investor will buy and sell securities between…
Q: Define purchases Journal.
A: Journal: Journal is the book of original entry. Journal consists of the day-to-day financial…
Q: Describe the discounting process?
A: discounting is the process of determining the future value into present value, In discounting time…
Q: Net realizable val = purchases entory - Decembe
A: The theory of lesser of cost or net realizable value states that inventory must be recorded at the…
Q: Define sales allowance.
A: Sales allowances: When a customer agrees to buy defective goods or improperly made then seller gives…
Q: Define discount percentage (credit)
A: The discount rate is the amount paid on debit and credit card payments to a dealer for payment…
Q: Design a purchase requisition, purchase order and purchase specification
A: Here provide the details of the Purchase requisition, purchase order and purchase specification…
Q: Explain payment (PMT)
A: Payment is the transfer of money, goods, or services in exchange for goods and services in…
Q: Define Conventional retail method.
A: Definition: Retail inventory method: It takes into account all the retail amounts that are, the…
Q: What is b Purchase Volume?
A: Purchase volume means the total amount of all the purchases charged to a single account.
Q: C.ompute the Purchase Journal
A: Purchase Journal is prepared as :- Purchase journal Date Purchaseinvoice…
Q: Summarize on what you understand from the purchase cycle system
A: Purchase Cycle System- Purchasing Cycle system refers to as system of buying product and service.
Q: Summarize the process to determine whether you can afford a particular purchase
A: The process is a defined way that helps individuals to analyze the particular item for taking the…
Q: evolution of purchasing development framework
A: Answer – Evolution of purchasing development framework – The product concept- This is from period…
Q: Rent and Rates Account
A: Figures in € Rates Prepaid 2000 Rent Accrued 4000 Rent Paid 6000…
Q: standard cost card fo
A: Standard cost of a product is the cost calculated based on the predetermined standards for direct…
Q: Define discount interest
A: Introduction: Usually, interest is the sum charged over an amount of time by the borrower for the…
Q: Define Advance payments.
A: Advance Payment : Advance Payment is a payment made before goods or services are provided. Advance…
Q: Define Gift card.
A: Cash sales These refer to sales made by companies in the form of liquid currency as cash. These are…
Q: Define Lump-Sum Purchases.
A: When a company purchases a group of assets collectively for a single price, such a transaction is…
Q: - record the purchase
A: Journal entry is the primary entry made for recording a particular accounting transaction.
Q: Define Purchase commitments.
A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…
Q: merchandise inventory
A: Merchandise inventory refers to price at which the company wants to sell further to its clients at a…
Q: Define purchase allowance
A: Following is the meaning of a purchase allowance
Q: Define clearing (payment process)
A: Checks: Checks refer to the written document which is dated and signed which directs a bank to pay a…
Q: e purchases journal.
A: Purchases journal is an accounting record used to update every transactions of purchase made.
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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.Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500Refer 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 direct 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.
- 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.Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first 37,500 of inventory purchased within the discount period and pays for the remaining 12,500 two months later. Required: 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Nelson uses the periodic inventory system. 2. Next Level Which of the two methods yields a conceptually preferable valuation of inventory?On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing. Dorsos December 31 ending inventory records are as follows: Year 1: Current cost, 20,000; Index, 100 Year 2: Current cost, 33,600; Index, 120 Using the dollar-value LIFO method, compute Dorsos December 31 ending inventory for Year 2.
- Inventory Costing Methods On June 1, Welding Products Company had a beginning inventory of 210 cases of welding rods that had been purchased for S88 per case. Welding Products purchased 1,150 cases at a cost of $95 per case on June 3. On June 19, the company purchased another 950 cases at a cost of $112 per case. Sales data for the welding rods are: Welding Products uses a perpetual inventory system, and the sales price of the welding rods was $130 per case. Required: 1. Compute the cost of ending inventory and cost of goods sold using the FIFO method. 2. Compute the cost of ending inventory and cost of goods sold using the LIFO method. 3. Compute the cost of ending inventory and cost of goods sold using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Assume that operating expenses are $21,600 and Welding Products has a 30% tax rate. How much will the cash paid for income taxes differ among the three inventory methods? 5. CONCEPTUAL CONNECTION Compute Welding Products' gross profit ratio (rounded to two decimal places) and inventory turnover ratio (rounded to three decimal places) under each of the three inventory costing methods. How would the choice of inventory costing method affect these ratios?Dani Corporation signed a binding commitment on December 2 to purchase inventory for 300,000 cash on January 2. By December 31, the market price (replacement cost) of the inventory had declined to 280,000. Prepare Danis journal entries at year-end and at the date of purchase.Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A physical count reveals that the latest inventory amount is 256,339. Record the adjusting entries, using T accounts.
- Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company discovers each error 2 years after it is made and it has closed the books for the second year. Ignore income taxes. E22-13: The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-vear life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest.Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.