Required information Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below.] At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $300. November 9 Return 25 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for the purchase discount, or $101 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.)
Required information Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below.] At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $300. November 9 Return 25 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for the purchase discount, or $101 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.)
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 5.10AMCP
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Required information
Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and
adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6)
[The following information applies to the questions displayed below.]
At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of $94. The following
transactions occur during the month of November.
November
November
2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30.
3 Pay cash for freight charges related to the November 2 purchase, $300.
9 Return 25 defective units from the November 2 purchase and receive credit.
November
November 11 Pay Toad Inc. in full.
November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from
the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for
the purchase discount, or $101 per unit.]
November 20 Receive full payment from customers related to the sale on November 16.
November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30.
November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of
inventory sold, ignore the possible purchase discount on November 20.)
Problem 6-6B Part 1
Required:
1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions.
(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc35bfef-1e1d-4e62-a745-481127990680%2F913f51b6-e8fc-41ac-a8d0-95b7555a3cf8%2Fo6281xv_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and
adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6)
[The following information applies to the questions displayed below.]
At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of $94. The following
transactions occur during the month of November.
November
November
2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30.
3 Pay cash for freight charges related to the November 2 purchase, $300.
9 Return 25 defective units from the November 2 purchase and receive credit.
November
November 11 Pay Toad Inc. in full.
November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from
the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for
the purchase discount, or $101 per unit.]
November 20 Receive full payment from customers related to the sale on November 16.
November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30.
November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of
inventory sold, ignore the possible purchase discount on November 20.)
Problem 6-6B Part 1
Required:
1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions.
(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Transcribed Image Text:Problem 6-6B Part 1
Required:
1. Assuming that Yoshi Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions.
(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
3
4
6
7
8.
10
>
Record the cost of inventory sold.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
November
Cost of Goods Sold
3
24
Inventory
Record entry
Clear entry
View general journal
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