TB MC Qu. 8-54 (Algo) Northwest Fur Company started Northwest Fur Company started 2024 with $99,000 of inventory on hand. During 2024, $470,000 in inventory was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,400. Inventory with an invoice amount of $3,700 was returned for credit. Cost of goods sold for the year was $373,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Multiple Choice O $187,651 $205,400 $187,711

TB MC Qu. 8-54 (Algo) Northwest Fur Company started Northwest Fur Company started 2024 with $99,000 of inventory on hand. During 2024, $470,000 in inventory was purchased on account with credit terms of 3/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,400. Inventory with an invoice amount of $3,700 was returned for credit. Cost of goods sold for the year was $373,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Multiple Choice O $187,651 $205,400 $187,711

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...

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Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Cinnamon Buns Company (CBC) started 2024 with $53,400 of inventory on hand. During 2024, $287,000 in inventory was purchased on account with credit terms of 210/210 , n30/�30 . All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $10,100. Inventory with an invoice amount of $3,500 was returned for credit. Cost of goods sold for the year was $309,000. CBC uses a perpetual inventory system. What is cost of goods available for sale, assuming CBC uses the gross method?
Jungkook Co. purchased goods with invoice price of P3,000 on account on December 27, 2021. The related shipping costs amounted to P50. The seller shipped the goods on December 31, 2021. Jungkook Co. received the goods on January 2, 2022 and settled the account on January 5, 2022. How much is the capitalizable cost of the inventory purchased if the terms of the shipment are FOB shipping point, freight prepaid? A. 0 B. 2,950 C. 3,050 D. 3,000
ABC Co. financial records on Dec31,2025 A/R,Dec2025-1,680,000 CollectionsofA/R-6,240,000 Allow.forbaddebts,Jan2025-38,400 Invetory,Jan1-2,880,000 Inventory,Dec31-1,500,000 CashSales-1,200,000 Purchases-4,800,000, GrossProfitSales-2,160,000 For current yr, the management decided to change the method in estimating bad debts from % of A/R to aging meth. Of ending bal of A/R, 60% of it belongs to 0-30 days category with 1% uncollectibility rate,30% belongs to 31-60 days age with 5% uncollectibility rate,&rest belongs to 61 & over days category with 10% uncollectibility rate. Bad debts expense for the year is?
Bevo Corp. started 2022 with $101,000 of inventory on hand. During 2022, $500,000 in inventory was purchased on account with credit terms of 3/15, n/45. Purchases were all made f.o.b. shipping point. All discounts were taken. Cost of goods sold for the year was $366,000. Inventory with an invoice amount of $3,200 was returned for credit. Bevo Corp. paid freight charges of $9,300. Bevo Corp. uses a perpetual inventory system. Calculate the cost of goods available for sale, assuming Bevo Corp. uses the gross method to record purchases. a) 592,100 b) 592,196 c) 607,100 d) 606,700
The following information is available from Goodyear Company’s 2022 accounting records: Purchases P530,000 Purchase discounts 10,000 Beginning inventory 160,000 Ending inventory 215,000 Freight-out 40,000Goodyear’s 2022 cost of goods sold is: a. 465,000 b. 475,000 c. 505,000 d. 585,000
Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in merchandise was purchased on account with credit terms 1/15, n/45. All discounts were taken. Purchases were all made FOB Origin. Ayo paid freight charges of P7,500. Merchandise with an invoice amount of P5,000 was returned for credit. Cost of goods sold for the year was P380,000. Ayo uses the perpetual inventory system. What is the ending inventory assuming Ayo uses the gross method to record purchases?
Northwest Fur Company started 2024 with $101,000 of inventory on hand. During 2024, $510,000 in inventory was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,500. Inventory with an invoice amount of $4,600 was returned for credit. Cost of goods sold for the year was $375,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases? Options are A)238,846 B)234,786 C)239,900 D)244,500
1) the 456 company purchased office supplies from A-One supplies worth P44,000 on May 29, 2021. A-one supplies gave the buyer trade discount of 10% and 5%. the buyer agreed with the term 2/10, n/45. How much will be paid by 456 company on June 8? a) 36867 b) 37630 c) 44000 d) 39600 2. below are some data of the income statement accounts of wishing well company for the year dec 31, 2021: inventory,beginning 430,800 inventory,end 399,500 freight - in 36,780 purchase discount 22,500 merchandise available for sale 1,230,500 how much is the cost of goods sold? a) 777,200 b) 799, 700 c) 740,420 d) 831,000 3) the 456 company purchased office supplies from a-one supplies worth 80,000 on april 4, 2021 A- one supplies gave the buyer trade discount of 5% and 2% the buyer and supplier agreed with the term 5/15, n/30. How much will be paid by 456 company on april 18? a) 80,000 b) 76,000 c) 70,756 d) 74480
32.ABC Store purchased P100,000 from XYZ Supplies on July 1, 20X1. Terms: 5%, 3%, 2/15, n/30. FOB Shipping point, freight prepaid. Shipping costs was P2,000. Insurance for the shipment was P500 and non refundable tax was P1,000. At what amount should ABC recognize as cost of the inventory under the gross method? 91,807 93,807 93,650 95,650
The following data are given for ABC Co. on Dec. 31, 2019 are:I nventory, beg. P600,000 Purchases 2,530,000 Purchase return 15,000 Purchase allowance 5,000 Purchase discount 10,000 Freight-in 50,000 Sales 3,100,000 Sales return 100,000 Sales allowance 50,000Sales discount 150,000 1. If the gross profit rate is 25% on sales, what is the ending Inventory? a. P900,000 b. P750,000 c. P2,250,000 d. P3,000,000 2. In the same question, assuming that gross profit rate is 25% on cost what should be the ending inventory? a. P750,000 b. P600,000 c. P750,000 d. P900,000