The following information pertains to the Leopoldo Valdez School Chairs: Transportation In Merchandise Inventory, 1/1/2020 Merchandise Inventory, 12/31/2020 Purchases Purchases Returns and Allowances Purchases Discounts P 172,000 1,200,000 1,900,000 4,300,000 129,000 215,000 Required: Prepare the cost of goods sold section of the income statement for the year ended Dec. 31, 2020.

Q: Resa Merchandising had the following financial information: 2018 Beginning Inventory  - 0  Purchases…

A: The inventory is the stock of items which are sold by the firm in order to generate profit. The…

Q: Direction: Journalize the given transactions below of BAM General Merchandise on the month of May…

A: Journal is a book in which all business transactions are recorded in the order in which they occur,…

Q: The following data were available from Hegge Department Store's records for the year ended December…

A: Retail inventory method:  Under this method, the closing stock of inventory is measured using cost…

Q: On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…

A: The retail inventory method treats the finances of a small business as inventory rather than…

Q: During your review of the Hearbeat Corporation for the year ended December 31, 2020, you found the…

A: SOLUTION INVENTORY IS A CURRENT ASSETS AND REFERS TO THE ALL STOCK IN VARIOUS PRODUCTION STAGES

Q: Record the following through the use of special journals

A: VAT: VAT stands for value added tax. Value added tax is charged on each stage of the supply chain…

Q: ABC LLC accounting records shows the following for the year ending on 31 December 2019 Purchase…

A: The net purchases is calculated as purchases with adjustment of purchase return and discounts.

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: Rela taps and tubes uses periodic method and it has reported the following in the year 2020 Sales…

A: Formula for Cost of Sales: =Opening Inventory + Purchases made - Purchase discount - Purchases…

Q: The following information pertains to the Leopoldo Valdez School Chairs: Transportation in…

A: The cost of goods sold section includes the details about all the inventory, purchases, returns,…

Q: At the end of Concord Department Store’s fiscal year on November 30, 2020, these accounts appeared…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions…

A: Cost of Goods Sold  It is the  direct cost  incurred in the production of any goods or services and…

Q: Below are important information from the books of Zenaida Algaba Company: P 836,000 20,000 Cost of…

A: Net purchases = Purchases + Transportation in - Purchase returns and allowances - Purchase discounts…

Q: At the end of Flounder Department Store's fiscal year on November 30, 2020, these accounts appeared…

A: Net sales revenue = Sales revenue - Sales returns and allowances Cost of goods sold = Beginning…

Q: The physical inventory on December 31, 2019 of Tintin Co. showed merchandise at P172,000. You…

A: The balance of inventory on December 31, 2019 as P172,000. To find the correct amount of inventory…

Q: As of January 1, 2020, Aristotle Inc. adopted the retail method of accounting for its merchandise…

A: Retail Method of inventory It is a method to determine the cost of ending inventory balance via the…

Q: The Physical inventory on January 31, 2019 of Kamote Company showed merchandise at $300,000. As an…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: ABC LLC accounting records shows the following for the year ending on 31 December 2019 Purchase…

A: Net Cost of Purchases = Purchases - Purchase Discounts - Purchase Returns

Q: following information applies to the questions displayed below.] January 1, 2021, Pet Friendly…

A: An organization may select the method to be followed for the valuation of the inventory. The most…

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Using the following information, prepare the Cost of Goods Sold section of an income statement.…

A: The cost of goods sold represents the amount incurred for the production process of the business of…

Q: Metlock, Inc. accounting records show the following for the year ending on December 31, 2022.…

A: Formula: Net purchases = Purchases - purchase discounts - Purchase returns and allowances Deduction…

Q: The foilowing are the accounts of Maris Merchandising for December 31, 2019. Php 1,000,000 (20.000)…

A: Comprehensive Income Statement: The comprehensive Income statement is a statement that provides the…

Q: The following information pertains to the Leonor's School Chairs: Transportation In 172,000…

A: Cost of goods sold means actual cost of goods that is being sold to the customers. It includes…

Q: The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense…

A: The Statement of owner’s equity represents a summary of the net amount of owner’s equity accounts…

Q: ello. could you please kindly assist on the third question from the below? ------   At the end…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The following amounts appeared on Plymouth Electronics' adjusted trial balance as of December 31,…

A: Income statement represents the net income or loss that is calculated by deducting the expenses from…

Q: The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: G. The following information pertains to the Leopoldo Valdez School Chairs: P 172,000 1,200,000…

A: Note: As per the policy we are supposed to solve one question at a time, Since Question G is the…

Q: Prepare the cost of goods sold section of the income statement for L. I. Grill from the information…

A: Cost of goods sold = Beginning inventory + Net purchase + Direct expenses - Closing inventory

Q: How do I prepare an income statement table?   At the end of Monty Department Store’s fiscal year…

A: Income Statement of the business is a useful financial statement which shows all income and expenses…

Q: Royal traders LLC accounting records shows the following for the year ending on 31 December 2019,…

A: Net cost of purchases means net amount payable to supplier after all returns and discounts and…

Q: Instructions. Answer the following problems below: The following information were taken from…

A: Income Statement - This statement shows the income earned and loss incurred by the organization in…

Q: Presented below are transactions related to Sheridan, Inc. Sheridan uses the periodic inventory…

A: CASH DISCOUNT IS THE DEDUCTION GIVEN BY THE SELLER OF THE GOODS OR PROVIDER OF SERVICES TO ENCOURAGE…

Q: Transportation in P 172,000 Merchandise Inventory 1/1/2019 1,200,000 Merchandise invenoty 12/31/2019…

A: Cost of Goods Sold-: Cost of goods sold implies the direct expenditures or costs of generating the…

Q: The following were selected from among the transactions completed by Home Sentry Company during…

A: Journal entry:   It is the first step of recording transactions of a company. Before this, no other…

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

A: SOLUTION- INVENTORY- IT IS THE  TERM FOR THE GOODS AVAILABLE FOR SALE AND RAW MATERIALS USED TO…

Q: l Bushra LLC accounting records shows the following for the year ending on 31 December 2019,…

A: COGS  = Opening inventory + Net purchases - ending inventory Opening inventory   = Nil Net Purchase…

Q: Presented below is information related to Sarasota Co. for the month of January 2020. Ending…

A: Adjusting entries are made at the end of an accounting period to comply the revenue and expenses…

Q: . The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost…

A: Correct inventory that should appear in Cherry Company's statement of financial position at December…

Q: The following data were taken from the accounting records of Cooka Lamps, Inc              Balance…

A: WR = TC/TQ Where TC = total cost of goods available for sale = (5000*30 + 1200 * 32 + 800 * 34) =…

Q: BigB furn mart has the opening inventory of RO 34,600, purchases of RO 52,800, purchase discount of…

A: Net purchases=Purchases-Purchase discount-Purchase return and allowance=RO 52,800-RO 2,400-RO…

Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The…

A: Calculation of Net Sales Net Sales = Gross Sales - Sales Discount Net Sales = 2,843,000 - 16,000 Net…

Q: The following information applies to the questions displayed below.] On January 1, 2021, Pet…

A: In this question, the information related to Pet Friendly Stores adopted the retail inventory method…

Q: Blossom Company uses special journals and a general journal. The following transactions occurred…

A: Sales Journal does not record cash sales to customers

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: The Physical inventory on January 31, 2019 of Jungkook Company showed merchandise at P300,000. As an…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: The following are accounts taken from the books of WEI LONG TRADING for year ended December 31,…

A: Multi Step income statement :— It is an income that is spilted into small items.    Rows of this…

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.