Question

Petersen Book Store entered into the transactions listed below. Prepare Petersen s necessary entries, assuming use of the perpetual inventory system July 6 Purchased $1,600 of merchandise on credit terms N30 8 Returned $100 of the items purchased on July 6. 9 Paid freight charges of $90 on the items purchased July 6. 19 Sold merchandise on credit for $4.400 terms 1/10, 1/30. The merchandise had an inventory cost of $2,700. 22 of the merchandise sold on July 19, $300 of it was retumed. The items had cost the store $150.

Answer 1

Cpatodic) OP oventos Vatuatior under Avuage cos! mehod units available for sate bc500 t 100t 800 fooo urits So ld 6 DOLSDD units 650 units in Ending nventony looc units 650 units = 350 unies units wighted areiage unlt cest Anit cost units TOLGL aan 2nenton (00 20/Tan $0600 3 5DD purchace $5 $00 3uyPthace $2400 purchate 300 $ 6 $ 6000 IDtal 6000 weighted g cose unit 4 6 per tcoounits Cost of Goods Sold 50 units x ¢ .3900 Ending nventoy 350 units x6 $21DD

Entales Jcuana! Punchases TD artoumts paya $1600 alc 1600 Being Puschases mode am credit) ACCounis payable ak $(00 $100 puschate eturns eRetuned htes Purchated) 90 Du Chas ges ate fD To Bonk alc $4400 Accounts etievables alc $y400 To Sales alc Sold aoods m (redit) Du. Closing Stock al Tadin ale (Muchandise had an $2100 TD 3nuertury Cost of atoo)

31 12 $300 Sale Hoins al $3.00 To Accounts ievables a le (Being good sold nas etuned) Va al Value anveritads undes FIFO Mthad 1alore Date ToLa Tate Purchares Rate Can'ts fost issues Rat tal 20 uni units an 李4 400 4400 $4 4 5 $250D 500 寺500 500 5 $700 roo 00 600 6 100 幸7 .050D DD $a400 $8 4400 21 4 5 500 $es00 100 200 $a400

PAChai tmits hat Totel Rat Belana 1Arits 2ssurt tamits 7ot a Ratr 4350 too 44 50 4 py00 $a500 SoD 600 45 $ 350 $7 50 $275 0 B50 t1s Vatar ot jvalue of Endinvtony $2150 pecember 3/ is at fos 350 units inder FifC METHOD Valut of ryentasy under LIFO METH0D Purchare Anits Balana Rat ale Rati 7otal fost fat total Total anit unitc S400 ran $600 $4 too 500 $5 $8500 500 $9.00 4400 $4 $250D $5 500 $a00 100 tayoo 48 4400 4 fo 10ct 300 $ 5 $8500 10 D $700 300 $a400 4a400 300 # 7 $700 50 $5 $1250 $5 250 1asD $4 00 $400 850units $1650

of Value 2ro decerrbesr vnder 3nntoy at oY 350 units I650 method it Ader 4 he The -that of amount Tn tome u pouted,using Fitc 2 the Method is $ a760 have -the the.n had folpuoed LIFD method of anceme that comp have reported is$1650 amount * The ditteren in ampunt of nome that the the the FIFO used Nould have ported had 1100 instead method of LIFD method is The Enome by I1D0 ,ohen used would be LIFO methved FIFD instead of method

Cpatodic) OP oventos Vatuatior under Avuage cos! mehod units available for sate bc500 t 100t 800 fooo urits So ld 6 DOLSDD units 650 units in Ending nventony looc units 650 units = 350 unies units wighted areiage unlt cest Anit cost units TOLGL aan 2nenton (00 20/Tan $0600 3 5DD purchace $5 $00 3uyPthace $2400 purchate 300 $ 6 $ 6000 IDtal 6000 weighted g cose unit 4 6 per tcoounits Cost of Goods Sold 50 units x ¢ .3900 Ending nventoy 350 units x6 $21DD