Reyes Company, a retail supplier of auto parts, purchased $30,000 of inventory on credit from Rock Auto. Credit terms offered on the transaction were a 2 percent discount if paid in 15 days or less or the net amount due in 60 days. Reyes paid for the purchase within the discount period. How much did Reyes pay for the inventory?   A. $30,600 B. $29,400 C. $30,000 D. $24,000

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: The terms of sale are written in a business language and hence we should read accordingly Net Amount…

Q: New Sunrise Bookstore sold 600 books on credit at $20.00 each with a sales term of 2/10 n/30. The…

A:

Q: Grandpa Clocks, Inc. (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells…

A: Given,  Cost Price of grandfather watch = $ 10,000 The selling price of grandfather watch = $14,000…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $42000, terms 2/15, net 45. The cost of the…

A: Net sales = Total sales - Sales return = $42000 - $4000 = $38000 Cost of goods sold =Original cost…

Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…

A: Formula: Discount amount = Invoice amount x Discount rate

Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…

A: There are different methods of recording the inventory transaction.

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Part (a) Purchase Price of Cellular Company = $27,800   Date of Purchase = June 25 Purchase Return /…

Q: Date Transaction May 1 Made cash sales of $8,500, the cost of the inventory was $4,000. 5 Purchased…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: A company purchased inventory for $3,000 from a vendor on​ account, FOB shipping​ point, with terms…

A: The process of recording business transactions in the books of accounts for the first time is known…

Q: Princess Jewelry purchased $7,000 of inventory on credit from Wholesale Jewelry on February 2. The…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for…

A: When the advance is received from a customer, it shall be recorded as advance only and not as…

Q: s. The business began the second quarter (April to June) of 2020 with 15 (V380PRO) camer s at a…

A: D The FIFO (First In, First Out) method Materials that are received first are issued first under…

Q: Zonker Inc. purchases 500 units of an item at an invoicecost of $30,000. What is the cost per unit?…

A:

Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…

A: Formula: Discount amount = Invoice amount x Discount rate.

Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…

A: As per the net method for recording journal entries, the sales and purchase transactions are…

Q: On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with…

A: In this question, we will solve the first 3 parts: 1) The nominal cost of trade credit 2)The…

Q: A cellular company purchased $28,800 in cell phones on September 25. The terms of sale were 4/20,…

A: Invoice price is the price which is charged by the manufacturer from dealer. This is the money…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $37000, terms 2/15, net 45. The cost of the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Green Company sells goods to Thumb Inc. on account on January 1, 2017.The goods have a sales price…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Described below are certain transactions of Edwardson Corporation. The company uses the periodic…

A:

Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 1/10, n/30. Barans…

A: 1/10 net 30 means 1% discount will be there if payment is made with in 10 days and no discount after…

Q: Shell Company purchased merchandise inventory with an invoice price of $4,000 and credit terms of…

A: Given Information : Invoice price of merchandise inventory purchased = $4,000 Credit terms = 2/10,…

Q: Zonker NV purchases 500 units of an item at an invoice cost of €30,000. What is the cost per unit?…

A: Situation 1: Cost per unit = Invoice cost / Number of units purchased = $30,000 / 500 units = $60…

Q: Chico Company allows its customers to return merchandise within 30 days of purchase. ∙ At December…

A:

Q: Record these business transactions in debit and credit format a) The Company purchased Inventory on…

A: Allowance for doubtful account is created to record bad debt under allowance method, and it is a…

Q: Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10, n/40. What…

A: Step 1 Discount is a benefit made available to the buyer by the seller for making payment against…

Q: Edwardson Corporation’s year-end is December 31. Assuming that no adjusting entries relative to the…

A:

Q: SumOne Limited is a retail store with a 30 June year-end. The company recorded the following: 2021…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: At the beginning of June, Circuit Country has a balance in inventory of $3,000. The following…

A: The journal entries are as follows:

Q: On January 1, 20x1 Plaka Co. acquired goods for sale in the ordinary course of business for…

A: Given information, Purchase price = P250,000 Refundable purchase taxes included in above = 5000…

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Freight charge is the amount paid for the transportation of goods from one place to another. These…

Q: 3) the 456 company purchased office supplies from a-one supplies worth 80,000 on april 4, 2021 A-…

A: company deals in selling product to the customer credit Management system and inventory management…

Q: A new firm, ABC, purchased 20,000 units of product X at PI0 per unit on January 5. It sold 15,000…

A: Ending inventory units are calculated as difference between units available for sale and units sold.…

Q: Carson's Bakery purchased $40,000 worth of inventory on account from their vendor. The terms were…

A: Amount to be paid = ( Total due - Return ) * ( 1 - Discount rate )

Q: Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American…

A: If the payment is made within discount period, the discount canbbe availed as per the terms and…

Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…

A: Journal entry: An act of recording the daily transaction of a firm in the journal is called journal…

Q: Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,000 tires to the…

A: 1. Date Account Titles and Explanation Debit Credit July 15, 2021 Accounts…

Q: Lewis Co. sold merchandise to AdCo for $60,000 and received $60,000 for that sale one month later.…

A: Given information is: Lewis Co. sold merchandise to AdCo for $60,000 and received $60,000 for that…

Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…

A: Invoice Price = 22,000 Credit Terms = 1/10,n/15 1% discount will be Provided if payment has made…

Q: Swisher Company sold inventory with a selling price of $5,000 to customers for cash.It also…

A: To record Sales Tax received from customer,  Debit cash account account Credit sales revenue account…

Q: The following information was drawn from the Year 1 accounting records of Ozark Merchandisers:…

A: a. Compute the amount of net sales:

Q: A cellular company purchased $28,600 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Credit terms are generally used by buyer and seller to make their trading more efficiently credit…

Q: 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a…

A: Prepare journal entry for May 15 transaction.

Q: Bonita Limited is a merchant operating in the province of Ontario, where the HST is 13%. Bonita uses…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: The following is a series of related transactions between Texas Wholesale Corp. and Boot Hill, a…

A: Problem 5.7 : a. Texas Wholesale Corp. On February 9, Texas Wholesale Corp. sold Boot Hill Sold =…

Q: The ABC merchandise Company has the following transactions: May 01: The Company purchased 5 units…

A: Perpetual inventory system refers to the system of measuring the inventory. Under the perpetual…

Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…

A: 1. (a) Record actual returns in 2021 of merchandise that was sold prior to 2021 : DATE…

Q: What was Good Buy​'s cost of​ inventory?

A: Cost of Inventory = Purchase price + Freight in + Purchase Return + Discount.

Q: 1. During the year, Fall Company purchased merchandise having a gross invoice cost of P1,000,000.…

A: The question is related with Perpetual Inventory method and Net Method for recording Inventory…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.