Stevens Company uses a perpetual inventory system. On July 10, Stevens Company purchases $70,000 of inventory on credit with payment terms of 1/10, net 30. Required:   Using the gross price method, prepare journal entries to record Stevens Company’s purchases on July 10 and the subsequent payment on August 8.

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory valuation method includes: FIFO method LIFO method Weighted average cost method FIFO…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Discount on Payment  = Total amount due x discount rate = $40,000 x 3% = $1,200

Q: A company purchased $1800 of merchandise on July 5 with terms 2/10, n/30. on July 7, it returned…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Selected information from the statement of financial position of SHY Company at November 30 and…

A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

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A: Introduction: Journal entry is used to document a commercial transaction in a corporation's…

Q: Selected information from the statement of financial position of ERNESTO Company at November 30 and…

A: Gross sales for the month of December = Ending accounts receivable + Cash collected from credit…

Q: ABC Inc purchased $9,000 inventory during the month of November from CDE Co. CDE applied a credit…

A: Formula used: Net purchases = Purchases - Purchase returns. Deduction of purchase returns value from…

Q: A company using the periodic inventory system has inventory costing $183 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + merchandise  purchased - Ending inventory

Q: Date Purchases Sales Balance Quantity Cost Quantity Cost Quantity Cost $72 Nov 1 65 Nov 3 120 $60 65…

A: Cost of goods sold refers to the direct expenses involved in the production of the goods sold by a…

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: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage indicates loss of inventory by normal wear and tear e.g. due to evaporation in…

Q: September 12, Ryan Compa

A: Journal entry Journal entry is a set of economic events which can be measured in financial terms.…

Q: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

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A: Calculation of Cost of Goods Sold and value of ending inventory using FIFO Method, Periodic…

Q: A company that uses the perpetual inventory system purchased inventory for $1,000,000 on account…

A: The Perpetual inventory system keeps the record of inventory separately and it is updated with every…

Q: Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased $100,000 of…

A: 1/15 net 45 means 1% discount is allowed if payment is made within 15 days. If payment after 45 days…

Q: Sony Company had the following transactions in December: Dec. 1 Sony purchased $18,000 merchandise…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that…

Q: Coronado Industries uses the perpetual inventory and the gross method. On March 1, it purchased…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

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: Litton Industries uses a perpetual inventory system. The company began its fiscal year with…

A: Record jouranl entry for purchase of inventory on account.

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: 1. Journalize November 2018 transaction in the books of Company T.

Q: Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December…

A: The question is based on the concept of Cost Accounting.

Q: ABC Co uses perpetual inventory system and Average Cost Method. The company's information for…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: Given that selling, distribution and administrative costs for the quarter were $22,960 and $74,240…

A: Perpetual Inventory System – Under the Perpetual inventory system on every sales transaction cost of…

Q: Fisman Corporation. uses the retail method of inventory. At the end of June, the records of the…

A: Cost to retail ratio is calculated by dividing the total of beginning inventory plus purchases at…

Q: Oriole Company completed the following transactions in October: Oriole uses a perpetual inventory…

A: Introduction: The amount of days it takes to recover accounts receivable is referred to as the cash…

Q: Pina Furniture Ltd. uses a perpetual inventory system and has a beginning inventory, as at June 1,…

A: The cost of goods sold refers to the cost of making the number of goods sold by an entity. But, it…

Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the…

A: Purchase amount net of discount = P20,000 - 2%  = P19,600

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Given information is: Shankar Company uses a perpetual system to record inventory transactions. The…

Q: Arppel Company uses a periodic inventory system and closes its accounts annually on 31 December.…

A: Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory Gross Profit = Net Sales -…

Q: ABC Co uses perpetual inventory system and Average Cost Method. The company's information for…

A: Inventory valuation methods include: First in first out Last in first out Weighted average method…

Q: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Periodic inventory system is the one under which the sales and purchases are recorded after a span…

Q: Polk Company uses a perpetual inventory system and had the following transactions during November:…

A: Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: FIFO- Under First in first out method inventories that are brought by the entity at earlier dates…

Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the…

A: Net Purchases = Invoice amount - Discount amount where, Discount amount = Invoice amount  x discount…

Q: accounting

A: Journal: It is the systematic record of a financial transaction recorded in a chronological order.

Q: McIntyre Company (Perpetual Inventory System) made a purchase of merchandise on credit from Marvin…

A: Under the perpetual inventory system, the inventory records are updated with each and every…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Perpetual method:-  Under the perpetual system the Inventory account is constantly (or perpetually)…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory is one of the important current asset of the business. There are several methods used for…

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: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…

A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

Q: On June​ 1, Nicholson Company purchased inventory on account with a cost of $1,200. Credit terms…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Selected information from the statement of financial position of FAIRVIEW Company at November 30 and…

A: Wages expense for the month of December = Ending wages payable + cash paid for wages - beginning…