Sant Summa is a retailer that purchases merchandise inventory from Lee Co. Sant Summa record inventory purchases using the gross method and the perpetual inventory system. Sant Summa started the month of July with $2,000 in inventory. Required: Record the journal entries for the following transactions Calculate Sant Summa's Cost of Goods Available for Sale based on the above information. Calculate Sant Summa's Ending Inventory based on the above information. 2-Jul Purchased $5,200 of merchandise inventory from Lee Co. with credit terms 2/15, n60 and FOB shipping point. (Inventory cost Lee $4,000) 3-Jul Paid $350 for shipping charges for the May 2 purchase. 4-Jul Sant Summa returned $200 of damaged merchandise inventory to Lee Co. (inventory cost to Lee of $170) 13-Jul Paid the appropriate amount for the Lee Co. purchases of July 2, taking all discounts. (Lee received the payment on July 14) 22-Jul Sold $3,800 of inventory to Arobo, Inc. for $7,200 with terms 1/15, n30. Shipping of $250 with term FOB shipping point. 30-Jul Arobo, Inc. paid the for the July 22 purchases, taking all discounts.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

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Sant Summa is a retailer that purchases merchandise inventory from Lee Co. Sant Summa record inventory purchases using the gross method and the perpetual inventory system. Sant Summa started the month of July with $2,000 in inventory.

Required:

Record the journal entries for the following transactions
Calculate Sant Summa's Cost of Goods Available for Sale based on the above information.
Calculate Sant Summa's Ending Inventory based on the above information.



2-Jul	Purchased $5,200 of merchandise inventory from Lee Co. with credit terms 2/15, n60 and FOB shipping point.
	(Inventory cost Lee $4,000)
3-Jul	Paid $350 for shipping charges for the May 2 purchase.
4-Jul	Sant Summa returned $200 of damaged merchandise inventory to Lee Co.
	(inventory cost to Lee of $170)
13-Jul	Paid the appropriate amount for the Lee Co. purchases of July 2, taking all discounts.
	(Lee received the payment on July 14)
22-Jul	Sold $3,800 of inventory to Arobo, Inc. for $7,200 with terms 1/15, n30. Shipping of $250 with term FOB shipping point.
30-Jul	Arobo, Inc. paid the for the July 22 purchases, taking all discounts.

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