Q3. Lamprino Appliance uses a perpetual inventory system. The following are three recent merchandising transactions: 1. June 10 Purchased 10 televisions from Mitsu Industries on account. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10, n/30. 2. June 15 Sold one of these televisions for $450 cash. 3. June 20 Paid the account payable to Mitsu Industries within the discount period. Requirements a. Prepare journal entries to record these transactions assuming that Lamprino records purchases of merchandise at: 1. Net cost 2. Gross invoice price b. Assume that Lamprino did not pay Mitsu Industries within the discount period but instead paid the full invoice price on July 10. Prepare journal entries to record this payment assuming that the original liability had been recorded at: 1. Net cost 2. Gross invoice price
Q3. Lamprino Appliance uses a perpetual inventory system. The following are three recent merchandising transactions: 1. June 10 Purchased 10 televisions from Mitsu Industries on account. Invoice price, $300 per unit, for a total of $3,000. The terms of purchase were 2/10, n/30. 2. June 15 Sold one of these televisions for $450 cash. 3. June 20 Paid the account payable to Mitsu Industries within the discount period. Requirements a. Prepare journal entries to record these transactions assuming that Lamprino records purchases of merchandise at: 1. Net cost 2. Gross invoice price b. Assume that Lamprino did not pay Mitsu Industries within the discount period but instead paid the full invoice price on July 10. Prepare journal entries to record this payment assuming that the original liability had been recorded at: 1. Net cost 2. Gross invoice price
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 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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