Travis Company purchased merchandise on account from a supplier for $8,000, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, record the journal entries required for the above transactions. a. b.
Q: Purchase-Related Transactions The Wheatland Company purchased merchandise on account from a…
A: 1/10,n/30 term means that if payment is made within 10 days from purchase, 1% of discount will be…
Q: Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $26,900…
A: Discount on payment = Accounts Payable x discount rate = $26,900 x 2% = $538
Q: On October 5, Blossom Company sells merchandise to Pina Company for $5,400, terms 2/10, n/30. The…
A: PERPETUAL INVENTORY SYSTEM: It is a method…
Q: On June 10, Culver Company purchased $8,700 of merchandise on account from Concord Company, FOB…
A: Journal entries are used by the management to record the transactions in the books of accounts.…
Q: Slinky Company purchased merchandise on June 10, 2021, at a price of $38,000, subject to credit…
A: Date Account Debit Credit Jun 10 Merchandise inventory (38000*97%) 36,860 Accounts Payable…
Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…
A: Perpetual inventory system: It is a method of inventory management that records real time…
Q: On June 10, Splish Brothers Company purchased $6,700 of merchandise from Sunland Company, on…
A: Financial transactions are tracked via journal entries. You insert transaction details into your…
Q: Prepare journal entries to record each of the following transactions. The company records purchases…
A: Discount on payment made = Total amount due x rate of discount = $60,000 x 3% = $1,800
Q: A Company purchased P3,600 of merchandise on account, terms 2/10, n/30. If payment was made after…
A: Purchase price = P 3600 Payment after expiration of the discount period
Q: Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45 on December 26.…
A: Journal Entries Sampson Company would record each transaction Journal Entries Batson Company would…
Q: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…
A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300
Q: Hell Ltd. sold merchandise for $20,000 on credit. The cost of merchandise sold was $11,900. The…
A: Perpetual Inventory System: A perpetual inventory system is a form of inventory control that uses a…
Q: company purchased inventory for $1,400 per unit. The company later sold one unit of the inventory…
A: There are two method of inventory management: Perpetual Inventory System and Periodic Inventory…
Q: Travis Company purchased merchandise on account from a supplier for $10,700, terms 2/10, net 30.…
A: As per perpetual inventory system, purchases increases the merchandise inventory which is an asset…
Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…
A: Solution: a) & b) Date Particulars Debit Credit Account Receivable A/c 4,200 To…
Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…
A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…
Q: Travis Company purchased merchandise on account from a supplier for $9,400, terms 2/10, net 30.…
A: Journal entry: A journal entry is a systematic record of a financial transaction recorded in…
Q: Presented below are transactions related to Star Company. On June 4, Star Company sold OMR670,000 of…
A: Introduction: Journals: Recording of a business transactions in a chronological order. first step in…
Q: On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Jojo purchased $3,000 of merchandise on credit, terms 3/15 n/30. The entry to record payment for the…
A: Discount on Payment = Invoice amount x rate of discount = $3,000 x 3% = $90
Q: Cathy's bakery purchased goods for $4,400 (including GST) on credit, terms 4/15, n/30. The entry in…
A: A perpetual inventory system is one in which inventory records are updated on a real time basis.…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $32,20o, terms 2/15, net 45. b. The cost…
A: Journal entries in the books of Sampson Co. sales discount = $32,200* 2% =…
Q: Prepare journal entries to record each of the following transactions. The company records purchases…
A: Journal entries (JE) refers to recording of transactions into the books of accounts or original…
Q: A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account…
A: A perpetual inventory system seems to be an application that constantly assesses your inventory…
Q: Show Me How Purchase-Related T The Stationery Company purchased merchandise on account from a…
A: The terms of the discount are 2/10, n/30. 2/10 means that the buyer will get a discount of 2% if…
Q: Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulliganspaid…
A: Step 1 Journal entries are the part of bookkeeping.
Q: Hussain Company purchased inventory on account from a supplier for Rs. 65,000, terms 1/10, n/30.…
A: Periodic and perpetual inventory systems are two main systems of inventory valuation. Under periodic…
Q: Cumberland Co. sells $998 of inventory to Hancock Co. for cash. Cumberland paid $624 for the…
A: Under perpetual inventory system, inventory and cost of goods sold are recorded and updated…
Q: A company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30 on July 7, it returned…
A: Inventory Purchased = $ 3700 Inventory returned = $ 850 Inventory is purchased on account Terms for…
Q: Sales-related transactions Sayers Co. sold merchandise on account to a customer for $86,000 terms…
A: The net method records the sales and purchases amount at net value after adjusting for discount to…
Q: A company purchased $3,000 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned…
A: Under perpetual inventory system, inventory purchased is recorded as merchandise and freight expense…
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: Prepare journal entries to record each of the following transactions. The company records purchases…
A: The perpetual inventory method is a method of accounting for inventory that records the movement of…
Q: $2,100; Inventory, $700 $2,100; Cost of Goods Sold, $1,400 $2,100; Cost of Goods Sold, $700
A: Perpetual inventory is an accounting method that uses a computerised point-of-sale (POS) system to…
Q: accounting
A: Journal: It is the systematic record of a financial transaction recorded in a chronological order.
Q: a company purchased inventory for $2,200 on account, and recorded the following journal entry:…
A: Purchases: Purchases refer to the business act of procuring the merchandise inventory. Purchase…
Q: Travis Company purchased merchandise on account from a supplier for $5,400, terms 2/10, net 30.…
A: Discount received = $5,400 x 2% = $108 Cash paid = $5,400 - $108 = $5,292
Q: Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of ?/10,…
A: Cost of good sold returned = (Cost of good sold / Sales)*Sales return = ($86,140 / $146,000)*$6,000…
Q: Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $26,900…
A: Period available to pay the amount : 60 days if it is paid in 10 days, 2% discount available…
Q: ABC Co. uses the gross method for discounts of inventory purchased. ABC Co. has the following…
A: Under the gross method for a discount on inventory purchase, the inventory is recorded at full…
Q: Inventory that cost $500 is sold for $700, with terms of 2/10, n/30. Give the journal entries…
A: Discount = Amount receivable x rate of discount = $700 x 2% = $14
Q: Company A began operations in the current year. The entity used perpetual inventory system.…
A: If the creditors pay their dues on time, they get the discount on their dues from the suppliers. The…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $24,30o, terms 2/15, net 45. b. The cost…
A: Solution Date Particulars Debit Credit Batson Co. A/c 24,300 To Sales A/c 24,300…
Q: On June 21, Marble Company purchased goods from Steel Company for $30,000, terms 2/10, n/30. The…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Travis Company purchased merchandise on account from a supplier for $5,700, terms 2/10, net 30.…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: Travis Company purchased merchandise on account from a supplier for $12,900, terms 2/10, net 30.…
A: Perpetual inventory system: It is a method of inventory management that records real time…
Q: Travis Company purchased merchandise on account from a supplier for $12,300, terms 2/10, net 30.…
A: Cash paid = Purchase - discount Discount = Purchases x discount rate
Q: Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount…
A: a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record…
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- D Traders purchased a product for R1 450 (excluding VAT). It was resold for R2 100 (excluding VAT) Calculate the mark-up on cost for this product.1) Merchandise acquired cost is 114.000 +10 % VAT .Freight In was 6.000 TL+10% VAT Paid by the vendor. Purchase is completed by endorsing a check.D Traders purchased a product for R1 450 (excluding VAT). It was resold for R2 100 (excluding VAT Calculate the gross profit margin for this product.
- Question 1. Trial balanceLand and premises 2000000Furniture 120000Inventory (01/04/19) 80000Import on duty 4000Wages of contract workers 46000Salaries 64000Carriage for goods purchased 5200Carriage for goods sold 12400Discounts 24900 25080Purchases and sales 705200 237252200 Rent 11200 13000Commission 15600 17400Bills receivable 1080012% investment (1/10/19) 136000Donation to national fund 1260010% bank loan 112000Factory rent 64000Receivables and payables 920000 240000eBank 728000Bad debts 66000 Provision for doubtful debts 20000Rates and taxes 31200BrokerageCapitalQueen corona 500000Queen covid 500000Current accountQueen corona 20000Queen covid 128000 Additional informationDue to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%.They agreed to provide for discount on receivables at 5%.All…HW Q 1 Current Attempt in Progress Information related to Riverbed Co. is presented below. 1. On April 5, purchased merchandise on account from Tamarisk Company for $ 36,000, terms 3/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $ 920 on merchandise purchased from Tamarisk. 3. On April 7, purchased equipment on account for $ 30,500. 4. On April 8, returned damaged merchandise to Tamarisk Company and was granted a $ 4,200 credit for returned merchandise. 5. On April 15, paid the amount due to Tamarisk Company in full. (a) Prepare the journal entries to record these transactions on the books of Riverbed Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. choose a transaction dateChoose a transaction date enter an…Purchase-related transactions Based on the data presented in Excrd.sc 6-14, journalize Ha I boa Co.s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice.
- 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.Dollar-Value LIFO Retail Intella Inc. adopted the dollar-value retail LIFO method on January 1, 2018. The following data apply to the 4 subsequent years: In addition, the following price indexes are available: Required: Compute the inventory at the end of each of the 4 years. Round the cost-to-retail ratio to 3 decimal places.Retail Inventory Method Red Department Store uses the retail inventory method. Information relating to the computation of the inventory at Decen1ber 31, 2019, is as follows: Estimated normal shrinkage is 2% of sales. Required: Prepare a schedule to calculate the estimated ending inventory at the lower of average cost or market at December 31, 2019, using the retail inventory method. Show supporting computations in good form. Round the cost-to-retail ratio to 3 decimal places.
- Inventory Write-Down Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the companys records: Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. 3. Assume that Palmquist uses IFRS. Compute the correct inventory value under the lower of cost or net realizable value rule. 4. Next Level Explain the differences between the inventory valuations reported under IFRS and U.S. GAAP.Purchase-related transactions Journalize entries for the following related transactions of Lilly Heating Air Company: A. Purchased 36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice within the discount period. C. Discovered that 9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit. D. Purchased 5,000 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D).Marked out of 20.00P Flag questionusing the income summary account for the month ofSiren MarketingAdjusted Trial BalanceMay 31, 2022Account TitleCashDebitCredit$8, 600Accounts Receivable$2, 500Prepaid Insurance$2,700 Accounts PayableUnearned RevenueKirk, Capital$1, 200$1, 800$5, 880Kirk, Withdrawals$1,600Service Revenue$8, 620Advertising Expenselnsurance ExpenseRent Expense Total$790$450$860$17,500 $17,500No comma or dollar sign should be included in the imput icklPrepare the closing entries in the proper order. For transactions that have more than 1 debit or more than 1 deditDebitAccount Title and Explanation Date May 31