Snap Products uses the perpetual inventory system. The company sells telephone equipment. On Jan 1, 2019, the company’s beginning inventory of telephone answering system manufactured by CellTell Company consisted of 24 telephone items at a cost of $400 each: Transactions relating to this product during 2019 follow: Jan 10 Purchased four S-200 telephone systems on account from CellTell at a cost of $400 each. Payment due in 30 days. Feb 23 Sold 12 S-200 systems on account to Dell & Carter, stockbrokers at a price of $600 per unit. Payment due in 30 days. Feb 24 Purchased 7 more S-200 systems on account from CellTell. Cost, $400 per machine. Payment due in 30 days. April 9 Paid in cash to CellTell for the units purchased on Jan 10. May 20 Sold 11 S-200 systems to Rancho Realty for cash. The selling price was $650 per unit. Nov 22 Collected in cash from Dell & Carter in full settlement of the credit sale on Feb 23.
Snap Products uses the perpetual inventory system. The company sells telephone equipment. On Jan 1, 2019, the company’s beginning inventory of telephone answering system manufactured by CellTell Company consisted of 24 telephone items at a cost of $400 each: Transactions relating to this product during 2019 follow: Jan 10 Purchased four S-200 telephone systems on account from CellTell at a cost of $400 each. Payment due in 30 days. Feb 23 Sold 12 S-200 systems on account to Dell & Carter, stockbrokers at a price of $600 per unit. Payment due in 30 days. Feb 24 Purchased 7 more S-200 systems on account from CellTell. Cost, $400 per machine. Payment due in 30 days. April 9 Paid in cash to CellTell for the units purchased on Jan 10. May 20 Sold 11 S-200 systems to Rancho Realty for cash. The selling price was $650 per unit. Nov 22 Collected in cash from Dell & Carter in full settlement of the credit sale on Feb 23.
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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Question
Snap Products uses the perpetual inventory system. The company sells telephone equipment. On Jan 1, 2019, the company’s beginning inventory of telephone answering system manufactured by CellTell Company consisted of 24 telephone items at a cost of $400 each:
Transactions relating to this product during 2019 follow:
Jan 10 Purchased four S-200 telephone systems on account from CellTell at a cost of $400 each. Payment due in 30 days.
Feb 23 Sold 12 S-200 systems on account to Dell & Carter, stockbrokers at a price of $600 per unit. Payment due in 30 days.
Feb 24 Purchased 7 more S-200 systems on account from CellTell. Cost, $400 per machine. Payment due in 30 days.
April 9 Paid in cash to CellTell for the units purchased on Jan 10.
May 20 Sold 11 S-200 systems to Rancho Realty for cash. The selling price was $650 per unit.
Nov 22 Collected in cash from Dell & Carter in full settlement of the credit sale on Feb 23.
Instructions
- Prepare
journal entries to record these transactions in the accounting records of Snap Products.
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