E5-21 Journalizing sales transactions
Learning Objective 3
Jan. 4 Sold $16,000 of antiques on account, credit terms ore n/30 Cost of goods is $8,000.
8 Received) SJOO sales return on damaged goods from the customer. Cost of goods damaged is $1$0.
13 Antique Mall received payment from the customer on the amount due from Jan. 4, less the return,
20 Sold $4,900 of antiques on account, credit terms are 1/10, n/45, FOB destination. Cost of goods is $2,450.
20 Antique Mall paid $70 on freight out,
29 Received payment from the customer on the amount due from Jan. 20, less the discount.
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- E6A-27 Computim Learning Objective 7 Appendix 6A ventory Consider the data of the following companies which use the PEHOUI system: Beginning Merchandise Inventory Ending Merchandise Inventory Cost of Goods Sold Net Cost of Net Sales Gross Profit Purchases Company Revenue $ 105,000 $ 23,000 $ 59,000 $ 22,000 24 (a) $ 45,000 Large Small (b) 27,000 94,000 (c) 99,000 40,000 Medium 96,000 (d) 58,000 24,000 68,000 (e) Petite 80,000 8,000 (f) 6,500 (g) 44,000 Requirements 1. Supply the missing amounts in the preceding table. 2. Prepare the income statement for the year ended December 31, 2019, for Large Company, which uses the periodic inventory system. Include a complete headıng and show the full computation of cost of goods sold. Large's operating expenses for the year were $12,000.arrow_forward7:28S W □ e6-20 Learning Objectives 2, 3 1. COGS $2,140 ⠀⠀⠀ Assume that AB Tire Store completed the following perpetual inventory transactions for a line of tires: May 1 Beginning merchandise inventory 11 Purchase 23 Sale 26 Purchase 29 Sale QAA C 16 tires @ $65 each 363/ 1480 10 tires @ $78 each 12 tires @ $88 each 14 tires @ $ 80 each Requirements 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method. 18 tires @ $ 88 each 5G 70% Ę 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method. GO ||| 0 < : ×arrow_forwardE8-21 Journalizing transactions using the direct write-off method versus the allowance method During August 2018, Lima Company recorded the following: Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods Sold. ● Learning Objectives 1, 2, 3 • Collections on account, $106,400. • Write-offs of uncollectible receivables, $990. Recovery of receivable previously written off, $800. ● Requirements 1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct write-off method. 2. Journalize Lima's transactions during August 2018, assuming Lima uses the allowance method.arrow_forward
- Learning Task 2.1: SCI Preparation Account titles Balance Account titles Balance Sales return P 5,555 Sales P 800,050 Purchases Purchase return and allowances Sales discount 13,300 470,650 20,000 Depreciation Expense Amortization Expense 5.465 10,500 Gain on sale of PPE 5,500 Advertising Expense 35,000 Interest Income 4,256 2% of Purchases Freight Out Salaries Expense Rent Expense Purchase discount 4,275 9,080 Freight In Utilities Expense 55,000 4,570 80,000 60,000 Decrease in Inventory Bad Debts 3% of gross sales Additional information: a) Depreciation of P5,000 is for computer equipment used in the Sales Department. b) Amortization is attributed to office leasehold improvements. c) 30% of salaries are attributed to office personnel. d) Utilities for the store represents 70% of utilities expense. e) Rent for the office space is P20,000 Requirements: Determine the following: 1) Net sales 2) Net Purchases 3) Cost of Goods Sold 4) Bad Debts Expense 5) Function of Step SCIarrow_forward(Learning Objectives 1, 2, 3: Apply GAAP for sales, sales returns, and salesdiscounts) Antique Interiors reported the following transactions in October:Oct 210111519Sold merchandise on account to Tim Hinkel, $1,200, terms 1/10, n/30.Sold merchandise on account to Ben Homan, $2,600, terms 2/10, n/30.Collected payment from Hinkel for the October 2 sale.Homan returned $2,000 of the merchandise purchased on October 10.Collected payment from Homan for the balance of the October 10 sale.Requirements1. Record the foregoing transactions in the journal of Antique Interiors using the grossmethod. (You do not need to make the cost of sales journal entries; assume that these entrieswill be made by the company when it makes its other adjusting entries at period end.)2. Calculate the amount of gross sales minus sales discounts for the month of October.arrow_forwardJournalize the following sales transactions for Antique Mall. Explanations are not E5-21 Jo required. The company estimates sales returns at the end of each month. Sold $16,000 of antiques on account, credit terms are n/30. Cost of goods Jan. 4 is $8,000. Received a $300 sales return on damaged goods from the customer. Cost 8. of goods damaged is $150. 13 Antique Antique Mall received payment from the customer on the amount due from Jan. 4, less the return. 20 Sold $4,900 of antiques on account, credit terms are 1/10, n/45, FOB destination. Cost of goods is $2,450. Antique Mall paid $70 on freight out. 20 Received payment from the customer on the amount due from Jan. 20, 29 less the discount.arrow_forward
- Vintage World uses a perpetual inventory system. Journalize the following sales transactions for Vintage World. Explanations are not required. The company estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount. Round all numbers to the nearest whole dollar.) (Click the icon to view the transactions.) Jan. 4: Sold $10,000 of antiques on account, credit terms are n/30, to Conch Designs. Cost of goods is $5,000. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Accounts Credit Date Jan. 4 Now journalize the expense related to the January 4 sale-Cost of goods, $5,000. Debit Date Jan. 4 Debit Accounts ... Creditarrow_forwardA customer discovers 60% of the total merchandise delivered from a retailer is damaged. The original purchase for all merchandise was $3,600. The customer decides to return 35% of the damaged merchandise for a full refund and keep the remaining 65%. What is the value of the merchandise returned?arrow_forwardA customer discovers 50% of the total merchandise delivered from the retailer is damaged. The original purchase for all merchandise was $5,950. The customer decides to return 40% of the damaged merchandise for a full refund and keep the remaining 60%. What is the value of the merchandise returned?arrow_forward
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