Question

Qны Novak Hachine Company maintains a ganeral ledger account tor each class of inventory, dabiting such accounts tor incraaces during the period and craditing tham tor decna ases. The transactions below relate to the Raw Materials inventery account, which is debited tor materials purchasad and craditad tor materials raquisitioned tor use. 1.An invoica tor $18,225, terms to.b. destination, was recaived and enterad January 2, 2020. The racclving ropert shows that the materials ware received December 28, 2010 2. Matarals costing s63,000, shipped t.o.b. destination, were not antarad by December 31, 2019, bacause thay were in a ralroad car on the company's siding on that data and had not bean unloaded." 3. Matarals costing s16,425 wara returned to the supplier on December 29, 2019, and ware shipped t.o.b. shipping paint. The return was antered on that data, evan though the materials ane not axpacted to reach the supplier's place of business until January 6, 2020 4. An invoica tor $i6.875, tarms to.b. shipping point, was received and antored Decomber 30, 2019. The recalving report shows that the materials ware rocolved January 4, 2020, and the bill of lading shows that thay wera shipped January 2, 2020. S. Natarals costing s44,550 wara recahed December 30, 2010, but no entry was made tor them because "they were ordared with a specitied delivery ct no earlier than lanuary 10, 2020. Prapare corracting ganaral joumal entries raquired at December 31, 2010, assuming that the books have not boon closed. (It no entry is raquirod, solect "No entry" for the account tities and enter0 for the amounts. Credit account tities are automatically Indented whan aniount is ontored. Do not Indent manually.) No. Account Titles and Explanation Debit Credt 2. 3.

Answer 1

Solution:

Journal entries:

No.	Date	Account title and explanation	Debit ($)	Credit($)
1.		Raw materials Inventory	8,225
		Accounts payable		8,225
		(To record the materials received December 28,2019)
2.		Raw materials inventory	63,000
		Accounts payable		63,000
		(To record materials received 31,dec., 2019,but had not been unloaded)
3.		No entry	0
		No entry		0
4.		Accounts payable	16,875
		Raw materials inventory		16,875
		( To record the receiving report)
5.		Raw materials inventory	44,550
		Accounts payable		44,550
		(To record the materials costing received December 30, 2019)