Que: 1 SUI sells presses. At December 31, 2011, SUI's inventory amounted to $500,000. During the first week of January 2012, the company made only one purchase and one sale. These transactions were as follows: Jan. 5 Purchased 60 machines from Double, Inc. The total cost of these machines was $40,000, terms 3/10, n/60. Jan. 10 Sold 30 different types of products on account to Air Corporation. The total sales price was $38,000, terms 5/10, n/90. The total cost of these 30 units to SUI was $10,000 (net of the purchase discount) SUI 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
Que: 1 SUI sells presses. At December 31, 2011, SUI's inventory amounted to $500,000. During the first week of January 2012, the company made only one purchase and one sale. These transactions were as follows: Jan. 5 Purchased 60 machines from Double, Inc. The total cost of these machines was $40,000, terms 3/10, n/60. Jan. 10 Sold 30 different types of products on account to Air Corporation. The total sales price was $38,000, terms 5/10, n/90. The total cost of these 30 units to SUI was $10,000 (net of the purchase discount) SUI 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
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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