rrent Attempt in Progress an inexperienced accountant for Cheyenne Ceramics made the following errors in recording merchandising transactions. A HK$1,580 refund to a customer for faulty merchandise was debited to Sales Revenue HK$1,580 and credited to Cash HK$1.580. 1. 2. A HK$1,440 credit purchase of supplies was debited to Inventory HK$1.440 and credited to Cash HK$1,440. 3. A HK$2,900 sales discount was debited to Sales Revenue. A cash payment of HK$350 for freight on merchandise purchases was debited to Freight-Out HK$2.210 and credited to Cash HK$2,210. 4. repare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are utomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the ccount titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit

rrent Attempt in Progress an inexperienced accountant for Cheyenne Ceramics made the following errors in recording merchandising transactions. A HK$1,580 refund to a customer for faulty merchandise was debited to Sales Revenue HK$1,580 and credited to Cash HK$1.580. 1. 2. A HK$1,440 credit purchase of supplies was debited to Inventory HK$1.440 and credited to Cash HK$1,440. 3. A HK$2,900 sales discount was debited to Sales Revenue. A cash payment of HK$350 for freight on merchandise purchases was debited to Freight-Out HK$2.210 and credited to Cash HK$2,210. 4. repare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are utomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the ccount titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 18E

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Question 1 of 6View PoliciesCurrent Attempt in ProgressThe following are selected transactions of Kingbird Company. Kingbird sells in large quantities to other companies and also sells itsproduct in a small retail outlet.March 131531-/1 = :Sold merchandise on account to Dodson Company for $10,600, terms 2/10, n/30.Dodson Company returned merchandise with a sales price of $600 to Kingbird.Kingbird collected the amount due from Dodson Company from the March 1 sale.Kingbird sold merchandise for $600 in its retail outlet. The customer used his Kingbird credit card.Kingbird added 2.0% monthly interest to the customer's credit card balance.Prepare journal entries for the transactions above. (Ignore cost of goods sold entries and explanations.) (Credit account titles areautomatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Problem 5 The Lychee Company is on a calendar year basis. The following data are available ➢Goods in transit shipped FOB destination by a supplier, in the amount of P100,000, had been excluded from the inventory, and further testing revealed that the purchase had been recorded ➢Goods costing P50,000 had been received, included in inventory, and recorded as a purchase. However, upon your inspection the goods were foundto be defective and would be immediately returned. ➢Materials costing P250,000 and billed on December 30 at a selling price of P320,000, had been segregated in the warehouse for shipment to a customer. The materials had been excluded from inventory as a signed purchase order had been received from the customer. Terms, FOB destination. ➢Goods costing P70,000 was out on consignment with Hermie Company. Since the monthly statement from Hermie Company listed those materials as on hand, the items had been excluded from the final inventory and invoiced on December 31 at…
Chapter 5 Problems Sales-related transactions using perpetual inventory system. The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400. Received check for amount due from Equinox Co. for sale on March 2. Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350. Sold merchandise on account to Targhee Co., $27,500, terms…
Required information Skip to question [The following information applies to the questions displayed below.] Hughes Hair Design is a wholesaler of hair supplies. Hughes Hair Design uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $32,397). $ 57,600 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $320). 350 c. Sold merchandise (costing $7,600) to a customer on account with terms n/60. 16,000 d. Collected half of the balance owed by the customer in (c). 8,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 180 f. Anticipate further returns of merchandise (costing $240) after year-end from sales made during the year. 360 Required: Compute Net Sales and Gross Profit for Hughes Hair Design.
Sales-Related Transactions The selected transactions below were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Instructions: Illustrate the effects of each of the transactions on the accounts and financial statements of Affordable Supplies Co. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the income statement effects that reduce gross profit as negative amounts. Jan. 6. Sold merchandise on account, $14,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,400. Balance Sheet Assets = Liabilities + Stockholders' Equity Accounts Receivable + Inventory = No Effect + Retained Earnings Jan. 6. fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Statement of Cash Flows Income Statement No effect fill in the…
Inventory Errors 1. On December 31, ABC Company counted and recorded $500,000 of inventory. This count did not include $80,000 of goods in transit, shipped to ABC Company on December 29, FOB shipping point. ABC Company recorded the purchase correctly on December 29 when the goods were shipped. A. Determine the correct December 31 inventory balance. B. Identify any accounts that are in error, and state the amount and direction (overstatement or understatement) of the error. Explain for each answer please, I don't understand.
7. The Allowance for Overvaluation account of the home office is debited:* a. When the home office ships merchandise to the branch at a billed price that exceeds cost. b. In a journal entry to close the account at the end of an accounting period. c. When the branch’s ending inventory is recorded in the home office accounting records. d. In some other circumstances. 8. Statement 1 (S1): Freight charges incurred by the branch office on merchandise inventory shipped from the home office would be included in the branch’s cost of goods available for sale even if the wrong merchandise was shipped from the home office.Statement 2 (S2): One reason why a branch office would not have a “loading” account is that the home office usually does not want the branch personnel to know the amount of unrealized profit built in to the merchandise’s transfer price. * a. S1- True; S2- True b. S1- True; S2- False c. S1- False; S2- True d. S1- False; S2- False
ss AccountingQ&A LibraryHarry Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The entity has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity Unit Cost Total Cost July 5 10,000 65 650,000 10 12,000 70 840,000 15 15,000 60 900,000 25 14,000 55 770,000 On July 31, 17,000 units were on hand. The sales for July amount to P6,000,000, or 60,000 units at P100 per unit. Gross profit on sales for July was P2,400,000. 1. What is the number of units available for sale on July 1? Harry Company sells a new product. During a move to a new location, the inventory records for the product were misplaced. The entity has been able to gather some information from the purchases and sales records. The July purchases are as follows: Quantity Unit Cost Total Cost July 5 10,000 65 650,000 10 12,000 70 840,000 15 15,000 60 900,000 25 14,000 55 770,000 On July 31,…
5. Shipments of inventory to the branch may be billed at other than cost. When billing prices are above cost, the unrealized mark-up is initially recorded by the home office a, in an "allowance" account. b. as a credit to investment in branch account. c. as an addition to the cost of "shipments to branch." d. a and c
1. When merchandise is shipped FOB (free on board) Destination: Select one: A. The buyer pays for the shipment. B. Title passes to buyer when merchandise is shipped. C. Title passes to buyer when merchandise is delivered. D. None of the above 2. Which of the following is NOT an element of internal control? Select one: A. Control environment B. Control procedures C. Management risk D. Risk assessment 3. In a merchandising business, when merchandise sold on account, a journal entry is booked to Debit to Accounts Receivable and Credit to Sales. In addition: Select one: A. Cost of goods sold is debited and Merchandise inventory is credited. B. Cost of goods sold is credited and Merchandise inventory is debited. C. Accounts Receivable is credited and Sales is debited. D. None of the above. 4. One of the primary objectives of inventory controls is: Select one: A. Safeguarding inventory from damage or theft. B. Selling inventory at an affordable price C. Both A &…
Blue Company made the following errors in recording merchandising transactions. This is due to an inexperienced accountant. A cash payment of OMR 20 for freight on merchandise purchases was debited to Freight-out OMR 200 and credited to Cash OMR 200. A OMR 300 refund to a customer for faulty merchandise was debited to Sales Revenue OMR 300 and credited to Cash OMR 300. A OMR 210 sales discount was debited to Sales Revenue. Instructions: Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed.
PROBLEM 5: In connection with your audit of VVV Manufacturing Company, you reviewedits inventory as of December 31, 2020 and found the following items: A. A packing case containing a product costing P100,000 was standing in the shippingroom when the physical inventory was taken. It was not included in the inventorybecause it was marked “Hold for Shipping Instructions”. The customer’s order was dated December 18 but the case was shipped and the customer billed on January 10, 2021. B. Merchandise costing P600,000 was received on December 28, 2020 and the invoicewas recorded. The invoice was in the hands of the purchasing agents and it was marked, “On Consignment”. C. Merchandise received on January 6, 2021, costing P700,000 was entered in thepurchase register on January 7. The invoice showed shipment was made FOB shippingpoint on December 31, 2020. Because it was not on hand during the inventory count, it was not included. D. Merchandise costing P200,000 was received on January 6,…