1.
Introduction:
To prepare: The journal entries for the given transactions.
2.
Introduction:
Journal entries: The journal entries are prepared by the organization to record the daily transactions that are non-economic and economic in nature. The ledger accounts are prepared based on the journal entries.
How keeping less inventory helps in increasing profit margin.
3.
Introduction:
Journal entries: The journal entries are prepared by the organization to record the daily transactions that are non-economic and economic in nature. The ledger accounts are prepared based on the journal entries.
To provide: The benefit and loss of keeping additional inventory.
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FINANCIAL & MANAG ACCT (CH. 1 - 24 EBOOK
- An unhappy customer just returned $50 of the items he purchased yesterday when he charged the goods to the companys store credit card. Which special journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalarrow_forwardPlease use the attached Excel document to complete this problem. Be aware that you are returning a few items on question #3 and you will be calculating the cash discount on #4 based on this new merchandise total.arrow_forwardII. TRUE OR FALSE Directions: Read each sentence carefully and determine whether the statement is TRUE or FALSE Write your answers on the space provided before each number. 1. liventory is the most importaní asset of a merchandising firm. 2. The sales journal can be used to record sales with immediate cash payments. 3. Under the sale term /10, net 30, the discount is valid until the 10th dav from the date of purchase. 4. Inventories are assets acquired which are held for sale in the ordinary course of the business. 5. Postings to the ledger shall be made on a chronological! order. 6. Information in subsidiary ledgers may come from special journals or the general journal. 7. Paying freight on merchandise sold increases the business' total assets. 8. The purchase of merchandise will increase cost of goods sold under the periodic inventory system, regardless of whether the purchase vas made on cash basis or on account.arrow_forward
- Select all that apply Describe good cash management practices involving inventory purchases. (Check all that apply.) Multiple select question. Invoices should be paid on the last day of the discount period. Inventory should be purchased with cash whenever possible. Buyers should take advantage of early payment discounts. Invoices should be paid on the first day of the discount period.arrow_forwardImagine you have taken a once-prized and valuable possession to a consignment store. You tell the clerk that you will not accept less than $200 for it. What are some steps the store might take to price the item? Create a plan for initial pricing and clearance discounting. Why is it important for the consignment shop to have a plan? List the steps the clerk might take to price the itemCreate a plan for initial pricingCreate a plan for clearance discountingExplain why this is importantarrow_forwardFor each of the following statements, fill in the blanks with the correct account names. A. A retailer purchases merchandise on credit. The retailer would recognize this transaction by debiting _____ and crediting _______. B. A retailer pays for purchased merchandise within the discount window. The retailer would recognize this transaction by debiting ________ and crediting _________ and ________. C. A customer returns merchandise to the retailer and receives a full refund. The retailer would recognize this transaction by debiting _________ and crediting _________ if the customer had not yet paid on their account. D. A customer pays for purchased merchandise within the discount window. The retailer would recognize this transaction by debiting ________ and _______, and crediting _________.arrow_forward
- Describe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.arrow_forwardYou returned damaged goods you had previously purchased from C.C. Rogers Inc. and received a credit memo for $250. Which journal would your company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalarrow_forwardA customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? Group of answer choices 1.accounts receivable, sales returns and allowances 2.accounts receivable, cash 3.sales returns and allowances, purchases 4.sales discounts, cost of goods soldarrow_forward
- 1.Which of the following statements are true?a. Recording purchase transactions in a general journal is considered efficient.b. Most businesses will carefully enter all purchase orders using the purchase orderjournal.c. A purchase requisition follows a purchase order.d. It is important for a company to verify all numbers on a supplier’s invoicee. In general, cash discounts are so minor they can be ignored. From the following, prepare a Schedule of Accounts Payable for Digital Co. for September 30, 2022. Account payable 210 Credit 100 9/5 GJ4 200 9/7 GJ5 300 9/15 GJ6 800 9/18 GJ6 L VON CO. CREDIT 100 9/5 GJ4 XON CO. CREDIT 300 9/15 GJ6 J. BEE CO. CREDIT 800 9/18 GJ6 ZERO CO. CREDIT 200 9/7 GJ5arrow_forwardEnter the letter for each term in the blank space beside the definition that it most closely matches. A. Sales discount D. FOB destination G. Merchandise inventory B. Credit period E. FOB shipping point H. Purchases discount C. Discount period F. Gross profit 1. Goods a company owns and expects to sell to its customers. 2. Time period that can pass before a customer’s full payment is due. 3. Seller’s description of a cash discount granted to buyers in return for early payment. 4. Ownership of goods is transferred when the seller delivers goods to the carrier. 5. Purchaser’s description of a cash discount received from a supplier of goods. 6. Difference between net sales and the cost of goods sold. 7. Time period in which a cash discount is available. 8. Ownership of goods is transferred when delivered to the buyer’s place of business.arrow_forwardA cash (sales) discount is usually granted to all of the following except a. retail customers. b. retailers. c. wholesalers. d. All of these are granted discounts Answer the question and explain why did you pick this answerarrow_forward
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