SI – Acct 284Chapter 6 & 7 - October 12th1. _________ ___________ system the inventory records are updated “perpetually” that is every time inventory is bought, sold, or returned.2. In _________ ___________ system the inventory records are updated “periodically” that is, at the end of the accounting period. 3. _________ is the politically correct term for loss of inventory from theft, fraud, and error.4. In a _____________ __________ all purchases of merchandise inventory are recorded directly into the Inventory account.5. A ____________ ___________ is a cash discount received for prompt payment of a purchase on account.6. What does FOB stand for?7. What is the difference between FOB shipping point and FOB destination?8. _______________ is tangible property that is held for sale in the course of normal business or will be used in producing goods or services.9. What are the four different types of inventory?10. Explain whether the following items should be included in the inventory of The Knot, Inc., a company that arrange and supplies wedding services for couples and other wedding consultants.a. Goods are being held by The Knot on consignment for Emerald Bridalb. Goods in transit to Winston Wedding Consultants, sold by The Knot FOB shipping point.c. Goods in transit to The Knot, purchased by The Knot FOB shipping point.Sales Total Gross Selling & Income fromCases Revenue Beg Inv Purchases Available End Inv COGS Profit General Exp OperationsA $ 800 $ 100 $ 700 ? $ 500 ? ? $ 200 ?B $ 900 $ 200 $ 700 ? ? ? ? $ 150 $ - C ? $ 150 ? ? $ 250 $ 200 $400 $ 100 ?D $ 800 ? $ 600 ? $ 250 ? ? $ 250 $ 100 Supply the missing dollar amounts for the 2008 income statement for each of the following independent cases.Inferring Purchases Using the Cost of Goods Sold EquationDillard’s, Inc. operates 330 department stores located in 29 states primarily in the Southwest, southeast, and Midwest. In its annual report for the year ended January 28, 2006, the company reported cost of goods sold of $5,014 million, ending inventory for the current year of $1,803 million, and ending inventory for the pervious year of $1,733 million. Is it possible to develop a reasonable estimate of the merchandise purchases for the year? If so, prepare the estimate. If not,explain
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