Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 15Q
15. Eastern Discount Stores incurred a $5,000 cash cost. How does the accounting for this cost differ if the cash were paid for inventory versus commissions to sales personnel?
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Students have asked these similar questions
(5) The company "Z" displays in its accounting records the following costs for the goods purchased to reach safely its warehouses:
Invoice value of goods 150.000€, discounts given on the invoice value of the purchase of 11.000 €, transport paid for the transport of goods from the warehouse of the supplier to the premises of the buyer 2.500 €, insurance premiums of goods 3.150 € were paid, packing costs for the transport 8.450 €, fees and customs clearance costs 7.780 €, commissions purchases 4.140 €, administrative expenses 5.550 €, salaries and wages 6.750 €, light-water-phone 3.150€, advertising-promotion costs 3.550€ and financial interest (debit) 1.485€.
Requested: To determine the cost of purchase of the quantities purchased.
All of this makes sense, thank you, except for Sept 22nd the Cost of Sales is missing. (On Sept 22, four customers paid cash for a total of $24,000 in custom work. The Cost of Sales for this revenue was $8,000. Note that the company does not hold inventory related to custom work.)
For the cost of sales what account is debited and what account is credited?
The financial statements for World Company show the following:
Cost of goods sold, $728,000.
Beginning Balance
Ending Balance
Merchandise Inventory
$
45,300
$
56,600
Accounts Receivable
53,600
50,300
Accounts Payable
37,300
42,600
How much cash was paid to suppliers?
Multiple Choice
$722,000.
$716,700.
$739,300.
$734,000.
Chapter 3 Solutions
Survey Of Accounting
Ch. 3 - 1. Define merchandise inventory. What types of...Ch. 3 - 2. What is the difference between a product cost...Ch. 3 - 3. How is the cost of goods available for sale...Ch. 3 - 4. What portion of cost of goods available for...Ch. 3 - 5. When are period costs expensed? When are...Ch. 3 - 6. If PetCo had net sales of 600,000, goods...Ch. 3 - Prob. 7QCh. 3 - 8. What are the effects of the following types of...Ch. 3 - 9. Northern Merchandising Company sold inventory...Ch. 3 - 10. If goods are shipped FOB shipping point, which...
Ch. 3 - 11. Define transportation-in. Is it a product or a...Ch. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - 14. Dyer Department Store purchased goods with the...Ch. 3 - 15. Eastern Discount Stores incurred a 5,000 cash...Ch. 3 - 16. What is the purpose of giving credit terms to...Ch. 3 - Prob. 17QCh. 3 - 18. Ball Co. purchased inventory with a list price...Ch. 3 - 22. Explain the difference between purchase...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - 25. What is the advantage of using common size...Ch. 3 - 27. What is the purpose of preparing a schedule of...Ch. 3 - 28. Explain how the periodic inventory system...Ch. 3 - Prob. 25QCh. 3 - Exercise 3-1 Determining the cost of financing...Ch. 3 - Exercise 3-2 Comparing a merchandising company...Ch. 3 - Exercise 3-3 Effect of inventory transactions on...Ch. 3 - Exercise 3-4 Effect of inventory transactions on...Ch. 3 - Exercise 3-5 Recording inventory transactions in a...Ch. 3 - Exercise 4-6A Understanding the freight terms FOB...Ch. 3 - Exercise 3-7 Effect of purchase returns and...Ch. 3 - Exercise 3-8 Accounting for product costs:...Ch. 3 - Effect of product cost and period cost: Horizontal...Ch. 3 - Cash Discounts and Purchase Returns On April 6,...Ch. 3 - Exercise 4-9A Determining the effect of inventory...Ch. 3 - Inventory financing costs Bill Norman comes to you...Ch. 3 - Effect of shrinkage: Perpetual system Ho Designs...Ch. 3 - Comparing gross margin and gain on sale of land...Ch. 3 - Single-step and multistep income statements The...Ch. 3 - Prob. 16ECh. 3 - Effect of cash discounts on financial statements:...Ch. 3 - Using common size statements and ratios to make...Ch. 3 - Prob. 19ECh. 3 - Determining cost of goods sold: Periodic system...Ch. 3 - Identifying product and period costs Required...Ch. 3 - Problem 4-23A Identifying freight costs Required...Ch. 3 - Effect of purchase returns and allowances and...Ch. 3 - Preparing a schedule of cost of goods sold and...Ch. 3 - Prob. 25PCh. 3 - Comprehensive cycle problem: Perpetual system At...Ch. 3 - Prob. 27PCh. 3 - Comprehensive cycle problem: Periodic system...Ch. 3 - Prob. 1ATCCh. 3 - ATC 3-2 Group Exercise Multistep income statement...Ch. 3 - Prob. 3ATCCh. 3 - Prob. 4ATC
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- Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400arrow_forwardA retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195arrow_forwardNewark Company has provided the following information:· Cash sales, $450,000· Credit sales, $1,350,000· Selling and administrative expenses, $330,000· Sales returns and allowances, $90,000· Depreciation expense, $101,000· Gross profit, $1,360,000· Increase in accounts receivable, $55,000· Bad debt expense, $33,000· Sales discounts, $43,000How much is Newark's cost of goods sold? Group of answer choices A)$307,000 B)$252,000 C)$440,000 D)$340,000arrow_forward
- If a company's Cost of Goods Sold is $158,800 for the period, beginning and ending Inventory balances are $18,400 and $13,400, respectively, and the beginning and ending Accounts Payable balances are $21,000 and $7,900, respectively, what is the amount of the cash paid to suppliers? Multiple Choice $156,200 $164,300 $166,900 $150,700arrow_forward23-A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business and credit terms are 3/10, n/60. What is the net cost of the goods sold assuming that if the retailer made the payment within the discount period? a. RO 16,000 b. RO 480 c. RO 14,400 d. RO 15,520arrow_forwardA home office ships inventory to its branch at 125% of cost. The required balance of the Deferred Profit account is P236,250. During the year, the home office sent merchandise to the branch costing P2,352,000. At the start of the year, the branch’s balance sheet shows P945,000 of inventory on hand that was acquired from the home office. By what amount is the cost of goods sold overstated?* a. P 777,000 b. P 540,750 c. P 236,250 d. P 588,000 pls. answer it asap thanksarrow_forward
- The Stationery Company purchased merchandise on account from a supplier for $9,300, terms 1/10, n/30. The Stationery Company returned $1,200 of the merchandise and received full credit. a. If Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by Stationery Company to record the return? Cost of Merchandise Sold ? Inventory ? Sales ? Accounts Payable?arrow_forwardSwisher Company sold inventory with a selling price of $5,000 to customers for cash.It also collected sales taxes of $250. The journal entry to record this information includes aa. credit to Sales Tax Expense $250.b. credit to Sales Revenue $5,250.c. debit to Sales Tax Payable $250.d. debit to Cash of $5,250.arrow_forwardFor Mortenson Company, the following information is available: Cost of goods sold P 60,000; Sales discounts 2,000; Income tax expense 6,000; Operating expenses 23,000; Sales 100,000. In Mortenson’s income statement, gross profit Choices; should not be reported. should be reported at P9,000. should be reported at P38,000. should be reported at P40,000arrow_forward
- Safety Company had $45,000 in gross sales, $1,200 in sales discounts, $10,000 in cost of goods sold, $5,500 in selling expenses, $600 in sales returns and allowances, and $7,200 in general expenses. What is Safety Company net sales? a.$35,000 b.$43,200 c.$20,500 d.$33,200arrow_forwardSuppose your company sells goods for $300, of which $200 is received in cash and $100 is on account. The goods cost your company $125 and were paid for in a previous period. Your company also recorded salaries and wages of $70, of which only $30 has been paid in cash. prepare journal entries a) Record the sales revenue of $200 for cash and $100 on account and record the cost of goods sold of $125 using one journal entry. b) Record the salaries and wages expense of $70.arrow_forward#38 ARSENAL Company recorded the following events involving a recent purchase of merchandise: Received goods for P20,000, terms 2/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the Company’s merchandise inventory increased by how much?arrow_forward
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