Best Company had the following transactions in March 2020:Purchased merchandising amounting to P36,000. Terms,March 2 2/10, n/30 FOB Shipping Point. Paid freight billamounting to P4,000.Returned P3,000 of the merchandise purchase on MarchMarch 52 because they were defectiveSold merchandise on account for P10,000, Terms 3/15,March 8n/30. The cost of merchandise sold was P6,000March 10 Paid the purchase made on March 2Received P2,.000 of merchandise sold on March 8. TheMarch 12cost of the merchandise returned was P1.200.March 22 Received cash from the March 8 sale. Based on the information above, please accomplish the following:1. Journalize, without explanation, the transactions based on periodic and perpetual systems.2. Prepare statement of cost of goods sold for the month ended March 31, 2020. Determine the cost ofending inventory.3. Prepare income statement for the year ended March 31, 2020.

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Best Company had the following…

Cornerstones of Financial Accounting

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Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
JBL undertook the following transactions for the month of Nov Purchased merchandise or $80,000 less 5-5 on terms 3/10 n/30. The entity paid freight for $2,500 and returned defective goods worth $7,000. JBL paid this account in full within the discount period. How much was the purchase discount?
On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer. The entity allowed trade discounts of 15%, and 10%. Credit terms were 3/10, n/30 and the sale was made FOB destination. AAA Company paid 100,000 of the delivery cost. a. Compute the total amount of purchases to be included on the buyer’s inventory in the determination of cost of goods available for sale if payment was made beyond the discount period. b. What is the full amount received by AAA company if payment was made on June 11, 2023?
(Avila & Dela Cruz) & MODIFIED: Newton General Merchandise had the following transactions in March 2020: March 2 Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000. March 5 Returned Php 3,000 of the merchandise purchased on March 2 because they were defective. March 8 Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000. March 10 Paid the purchase made on March 2 less the return and the discount. March 12 Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200. March 22 Received cash from the March 8 customer in full settlement of his account less the return and the discount. REQUIRED: Prepare the appropriate journal entries for both periodic and perpetual inventory systems.
n January 3, 2015 Holland Company sold to austin merchandise having a sales price of P16, 000 (cost P11, 200) with terms of 2/10, n/60. FOB shipping point, Holland estimates that merchandise with a sales value of P1, 600 will be returned. An invoice totaling P240, terms n/30, was received by Austin on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Austin notified Holland that P600 of merchandise contained flaws. The same day, Holland issued a credit memo covering the defective merchandise and asked that it be returned at Holland’s expenses. Holland estimates returned items to have a fair value of P240. The freight on the returned merchandise was P48, paid by Holland on June 7. On June 12, The Company received a check for the balance due for Austin. Prepare the Journal entries for Holland Company to record Alll the events noted above assuming sales and receivable are entered at gross selling price. Prepare the journal entry assuming…
Cinnamon Buns Co. (CBC) started 2021 with $53,900 of merchandise on hand. During 2021, $288,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $10,900. Merchandise with an invoice amount of $3,000 was returned for credit. Cost of goods sold for the year was $302,000. CBC uses a perpetual inventory system.Assuming CBC uses the gross method to record purchases, ending inventory would be:

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