Question 32 of 50 > A company using the perpetual inventory system purchased inventory worth $17,000 on account with credit terms of 1/10, 20. Defective inventory was received, but insad of a retum, an allowance of $1,200 is given. The allowance is granted before the invoice is paid. The journal entry to record the ailowance would be OA. $1,200 debill to Accounts Payable and $1,200 credit to Merchandise inventory OB. $1,200 debill to Merchandise Inventory and $1,200 credit to Accounts Payable OC. $1,188 debit to Accounts Payable and $1,188 credit to Merchandise Inventory OD. $1,188 debill to Merchandise Inventory and $1,188 credit to Accounts Payable

Question 32 of 50 > A company using the perpetual inventory system purchased inventory worth $17,000 on account with credit terms of 1/10, 20. Defective inventory was received, but insad of a retum, an allowance of $1,200 is given. The allowance is granted before the invoice is paid. The journal entry to record the ailowance would be OA. $1,200 debill to Accounts Payable and $1,200 credit to Merchandise inventory OB. $1,200 debill to Merchandise Inventory and $1,200 credit to Accounts Payable OC. $1,188 debit to Accounts Payable and $1,188 credit to Merchandise Inventory OD. $1,188 debill to Merchandise Inventory and $1,188 credit to Accounts Payable

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
Discounts Nelson Company bought inventory for 50,000 on terms of 2/15, n/60. It pays for the first 37,500 of inventory purchased within the discount period and pays for the remaining 12,500 two months later. Required: 1. Prepare the journal entries to record the purchase and the payment under both the (a) gross price and (b) net price methods. Assume that Nelson uses the periodic inventory system. 2. Next Level Which of the two methods yields a conceptually preferable valuation of inventory?
Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note is discounted at a 15% rate. RE9-1 Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.
Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.
Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash, indicating the ending balance. Assume no beginning balances in Accounts Payable and Inventory, and a beginning Cash balance of $21,220. A. purchased merchandise inventory on account, $9,900 B. paid vendors for part of inventory purchased earlier in month, $6,500 C. purchased merchandise inventory for cash, $4,750
Our narrative and DFDs are created assuming that accounts payable result from the purchase of inventory using a perpetual inventory system. However, inventory is not the only item that a company might purchase. For each of the following situations, show the journal entry (in debit/credit journal entry format with no dollar amounts) that would result when the accounts payable was created. Make and state any assumptions you think are necessary. Situations: 1. Merchandise is purchased, and a periodic inventory process is used. 2. Merchandise is purchased, and a perpetual inventory process is used. 3. Office supplies are purchased. 4. Plant assets are purchased. 5. Legal services are purchased.
TB MC Qu. 8-48 (Static) A company purchases inventory for... A company purchases inventory for $10,000, with terms 3/10, n/30. The company uses a perpetual system and the net method to record p To record this transaction, the company debits the Inventory account for $9,970. Which of the following statements is correct? Multiple Choice The company should instead credit Inventory. The company should instead debit Purchases. The recorded amount should instead be $9,700. Two of the other answer choices are correct. < Prev 8 of 16 +++ Next
1. Record purchases GROSS OR NET - example using purchase of $800 of inventory, terms 2/10, n30 - both periodic and perpetual inventory systems. A. Pay vendor within the discount period B. Pay vendor after discount period expires C Record return of goods and associated reduction of A/P or cash refund
Question 7 A company purchased inventory for $4000 from a vendor on account, FOB shipping point, with terms of 2/15, n/30. The vendor paid $200 cash for freight on the company's behalf, which was not included in the original entry for the purchase. The entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include (Assume a perpetual inventory system.) O a debit to Accounts Payable for $4000, a credit to Merchandise Inventory for $80, and a credit to Cash for $3920 O a debit to Accounts Payable for $4000, a debit to Merchandise Inventory for $120, and a credit to Cash for $4120 a debit to Accounts Payable for $3920 and a credit to Cash for $3920 O a debit to Accounts Payable for $3920, a debit to Merchandise Inventory for $80, and a credit to Cash for $4000 10:50 A 4/28/202
A Company purchased P3,600 of merchandise on account, terms 2/10, n/30. If payment was made after the expiration of the discount period, the entry to record the payment would include a O A. Credit to inventory of P3,600 O B. Credit to cash of P3,528 C. Credit to cash of P3,600 O D. Debit to accounts payable of P3,528
On March 12th, Company B sold $800 of inventory to a customer for $1,400. The customer paid $400 and promised to pay the difference within 10 days. Based on this transaction, match the account on the left with its appropriate debit or credit entry on the right. Inventory [ Choose] Accounts Receivable [Choose] Cash [ Choose] Cost of Goods Sold [ Choose ] Sales Revenue V[ Choose ] Credit $1,400 This account should not be indcluded in this entry. Debit $1,000 Debit $800 Net Income Credit $800 Debit $400 Debit $1,400
Account payable OMR 200; Bank loan OMR 1,200; Warranty liability of OMR 500; Creditors OMR 100 and Unearned revenue OMR 200. Calculate the value of record liabilities: Inventory count of a company Alpha is 24,000 units. This inventory includes goods held on consignment of company Beta costing OMR 8,000. Company Alpha did not include the cost of OMR 1,400 for the goods sold which are still in transit (FOB shipping point). Calculate the cost of inventory: ull lis isI O 直 0 TOSHIBA