Answered: Using the facts in Problem #7, please…

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 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....

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Using the facts in Problem #7, please do the journal entry for your company selling 250 items of your inventory for $120,000 with the terms 1/10, n/30 on 2/10/19. Note that the "perpetual"* and the the 'periodic" methods use the same account names when selling merchandise. Then do the journal entry for your customer returning $10,000 of the inventory on 2/13/19. Number 7 has already been answered it’s only there to provide assistance with number 9

9. Using the facts in Problem #7, please do the journal entry for your company selling 250
items of
your inventory for $120,000 with the terms 1/10, n/30 on 2/10/19. Note that the
"perpetual" and the "periodic" methods use the same account names when selling
merchandise.
Then do the journal entry for your customer returning $10,000 of the inventory on 2/13/19.

Part 7.
JOURNAL - Perpetual inventory
Particulars Debit Amt Credit amt
Inventory 145,000
Accounts
|payable
|(To record
purchase of
|inventory)
Accounts
Date
1/19/19
|145,000
1/28/19
|30,000
payable
Inventory
|(To record
return of
inventory)
Accounts
payable
|Cash
30,000
1/31/19
|115,000
|112,700
Inventory
|(115,000 *
2%)
(To record
payment to
suppliers)
2,300

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