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 AND MANAGERIAL ACCTG W/ACC CRD
- You 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_forwardDescribe 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_forwardA retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods soldarrow_forward
- This problem challenges you to apply your cumulative accounting knowledge to move a step beyond the material in the chapter. Days cash is outstanding for merchandise: 54.04 days Combining the information provided by various ratios can enhance your understanding of the financial condition of a business. Review the information provided for Na Pali Coast Company in the Mastery Problem. Using this information, respond to the following questions: REQUIRED 1. Compute the average number of days required to sell inventory and collect cash from customers buying on account. 2. Note that Na Pali Coast Company also buys inventory on account. On average, how many days pass before Na Pali pays its creditors? 3. Using the information from your answers to parts (1) and (2), compute the number of days from the time Na Pali Coast pays for inventory until it receives cash from customers on account.arrow_forwardA customer just charged $150 of merchandise using MasterCard. 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_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? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods soldarrow_forward
- Review the following transactions, and prepare any necessary journal entries for Renovation Goods. A. On May 12, Renovation Goods purchases 750 square feet of flooring (Flooring Inventory) at $3.00 per square foot from a supplier, on credit. Terms of the purchase are 2/10, n/30 from the invoice date of May 12. B. On May 15, Renovation Goods purchases 200 measuring tapes (Tape Inventory) at $5.75 per tape from a supplier, on credit. Terms of the purchase are 4/15, n/60 from the invoice date of May 15. C. On May 22, Renovation Goods pays cash for the amount due to the flooring supplier from the May 12 transaction. D. On June 3, Renovation Goods pays cash for the amount due to the tape supplier from the May 15 transaction.arrow_forwardA customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods soldarrow_forwardReview the following situations and record any necessary journal entries for Nine Lives Inc. Jan. 15 Nine Lives Inc. purchases $8,770 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $345 cash. The terms of the purchase are FOB Shipping Point. Jan. 23 Nine Lives Inc. sells $4,520 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Nine Lives of $3,600. Shipping charges are an extra $190 cash. Terms of the sale are FOB Destination.arrow_forward
- Review the following situations and record any necessary journal entries for Mequon's Boutique. May 10: Mequon's Boutique purchases $2400 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $130 cash. Terms of the purchase are FOB Shipping Point. May 14: Mequon's Bountique sells $3000 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mequon's of $1750. Shipping charges are and extra $150 cash. Terms of the sale are FOB Shipping Point.arrow_forwardUsing all journals This problem continues the Crystal Clear Cleaning practice set begun in Chapter 2 and continued through Chapters 3 and 4. Crystal Clear Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Crystal Clear uses the perpetual inventory system. During December 2018, Crystal Clear completed the following transactions: Requirements Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal (omit Sales Discounts Forfeited column), a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. Total each column of the special journals. Show that total debits equal total credits in each special journal.arrow_forwardAnother "Birdy Birdhouse" problem but with different numbers and set up. Using the accounts listed below, review the following transactions for Birdy Birdhouses and record any required journal entries. Birdy Birdhouses uses the periodic inventory system: Accounts Payable Merchandise Inventory Sales Accounts Receivable Purchases Sales Discounts Cash Purchase Discounts Sales Returns and Allowances Cost of Goods Sold Purchase Returns and Allowances Sales Tax Payable PLEASE NOTE: You must enter the account names exactly as written above and all dollar amounts will be with "$" and commas as needed (i.e. $12,345). Sep. 6: Birdy Birdhouses purchases 57 birdhouses at $46 each with cash. DR CR Sep. 8: Birdy Birdhouses purchases 94 birdhouses at $44 each on credit. Terms of the purchase are 2/10, n/30, invoice date September 8. DR CR Sep. 10: Birdy discovers 12 of the birdhouses are damaged from the Sep. 6 purchase and returns them to the supplier…arrow_forward
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