GSU ACCT 2101 - Chapter 5 Webex Activity Copy

Unformatted text preview:

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Journalize perpetual inventory entries.Sept. 6: Purchased calculators from Dragoo Co. at a total cost of $1,650, on account, terms n/30.Inventory 1,650Accounts Payable 1,650Sept. 9: Paid freight of $50 on calculators purchased from Dragoo Co.Inventory 50Cash 50Sept. 10: Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications.Accounts Payable 66Inventory 66Sept. 12: Sold calculators costing $520 for $690 to Fryer Book Store, on account, terms n/30.Accounts Receivable 690Sales Revenue 690Cost of Goods Sold 520Inventory 520Sept. 14: Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34.Sales Returns & Allowances 45Accounts Receivable 45Inventory 34Cost of Goods Sold 34Sept. 20: Sold calculators costing $570 for $760 to Heasley Card Shop, on account, terms n/30.Accounts Receivable 760Sales Revenue 760Cost of Goods Sold 570Inventory 570Assume that Mitchell Company uses a periodic inventory system and has these account balances: Purchases $620,000 Purchase Returns and Allowances $25,000Purchases Discounts $11,000Freight-In $19,000Beginning inventory of $45,000Ending inventory of $55,000Net sales of $750,000Determine the amounts to be reported for cost ofgoods sold and gross profit.Calculation of cost of goods sold Inventory, beginning............................................................. $45,000Cost of goods soldPurchases............................................................................ $620,000Less: Purchases returns and allowances .......................... $25,000 Purchase discounts ................................................. 11,000 36,000Net purchases...................................................................... 584,000Add: Freight-In..................................................................... 19,000Cost of goods purchased..................................................... 603,000Cost of goods available for sale........................................... 648,000Inventory, ending................................................................. 55,000Cost of goods sold............................................................... $593,000Calculation of gross profitNet sales.............................................................................. $750,000Cost of goods sold............................................................... 593,000Gross profit..........................................................................


View Full Document

GSU ACCT 2101 - Chapter 5 Webex Activity Copy

Download Chapter 5 Webex Activity Copy
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Chapter 5 Webex Activity Copy and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 5 Webex Activity Copy 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?