ACCT 1201 Lecture Notes - Inventory Turnover, Zale Corporation, Net Income
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Nov. | 3 | Instructions: Journalize the transactions below (credit and debit) Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers. 25%, terms FOB destinationFreight terms in which the seller pays the transportation costs from the shipping point to the final destination. , 2/10, n/30. |
4 | Sold merchandise for cash, $36,900. The cost of the goods sold The cost that is reported as an expense when merchandise is sold. was $20,480. | |
5 | Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. , 2/10, n/30, with prepaid freight of $750 added to the invoiceThe bill that the seller sends to the buyer. . | |
6 | Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. | |
8 | Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510. | |
13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
14 | Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270. | |
15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
23 | Received cash on account from sale of November 8 to Quinn Co. | |
24 | Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270. | |
28 | Paid VISA service fee of $3,700. | |
30 | Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290. |
1.) X sold Y merchandise on account FOB shipping point, 3/10,net 30, for $10,000. X prepaid the $200 shipping charge. Using theperpetual inventory method, which of the following entries will Ymake if Y pays within the discount period?
Accounts Payable-X, debit $9,900; Cash, credit $9,900 | |
Accounts Payable-X, debit $10,000; Transportation In, credit$200; Cash, credit $9,800 |
Accounts Payable-X, debit $9,700; Merchandise Inventory, debit$200; Cash, credit $9,900 | |
Accounts Payable-X, debit $9,700; Transportation In, debit $200;Cash, credit $9,900 |
2.) Merchandise with an invoice price of $4,000 is purchasedsubject to terms of 2/10, n/30, FOB destination. Transportationcosts paid by the seller totaled $150. What is the cost of themerchandise, assuming the discount is taken?
$4,070 | |
$3,920 |
$4,067 | |
$4,150 |
3.) A sales invoice included the following information:merchandise price, $1,000; transportation, $200; terms 1/10, n/eom,FOB shipping point. Assuming that a credit for merchandise returnedof $300 is granted prior to payment, that the transportation isprepaid by the seller, and that the invoice is paid within thediscount period, what is the amount of cash received by theseller?
$693 | |
$893 |
$990 | |
$700 |
4.) X sold Y merchandise on account FOB shipping point, 2/10,net 30, for $10,000. X prepaid the $200 shipping charge. Which ofthe following entries does X make to record this sale?
Accounts Receivable debit $9,800; Sales credit $9,800; AccountsReceivable debit $200; Cash credit $200 | |
Accounts Receivable debit $10,400; Sales credit $10,400 |
Accounts Receivable debit $10,000; Sales credit $10,000 | |
Accounts Receivable debit $10,000; Sales credit $10,000;Transportation Out debit $200; Cash credit $200 |