Homework Answers
A company purchases merchandise for $500 plus a freight charge of $50 from s supplier. Using the periodic system of inventory, Following will be impact of the given transaction:
(i) Purchases will be debited by $500 since the cost of inventory purchased is $500
(ii) Freight in will be debited by $50 as it is an expense.
(iii) Accounts payable will be credited by $550 ( $500 for cost of inventory and $50 for freight in).
Hence, option first, second and fourth are correct.
Kindly comment if you need further assistance. Thanks‼!
Add Answer to:
A company purchases merchandise for $500 plus a freight charge of $50 from a supplier, payment...
A company that uses the periodic inventory system purchases merchandise inventory for $1,000 plus freight of...
A company that uses the periodic inventory system purchases merchandise inventory for $1,000 plus freight of $100 from Sunny Supplier Co., with credit terms 2/10,n/30. The company will record this transaction with a debit to: Check all that apply. accounts payable for $1,000 purchases for $1,000 freight in for $100 purchases for $1,100 accounts payable for $1,100
A company purchases merchandise Inventory for $1,000 plus freight of $100 from Field Supplier Co., with...
A company purchases merchandise Inventory for $1,000 plus freight of $100 from Field Supplier Co., with credit terms 2/10, n/30. The company will record this transaction in a perpetual inventory system with a debit to: Click the answer you think is right. accounts payable for $1,000 accounts payable for $1,100 merchandise inventory for $1,000 merchandise Inventory for $1,100 Rond about this Do you know the answer? No Idea Think so UR
A company received a credit memorandum for $100 from a supplier for defective product returned
A company received a credit memorandum for $100 from a supplier for defective product returned. Using a periodic inventory system, this transaction would be recorded with a which of the following entries: Check all that apply. credit to accounts payable credit to purchases returns & allowances debit to accounts payable debit to purchases returns & allowances
On May 4, Roscoe Grocery received merchandise costing $3,500 with freight charges of $200 paid by...
On May 4, Roscoe Grocery received merchandise costing $3,500 with freight charges of $200 paid by the supplier and added to the invoice, terms 2/10, 1/30. Some goods were returned, and, on May 11, the supplier issued a credit memo in the amount of $400. Roscoe paid the amount due on May 14 and recorded the transaction with a debit to: Click the answer you think is right. accounts payable cash purchases discounts purchases returns and allowances
Explain what the credit terms of 2/10,1/30 mean. (Check all that apply.) The full payment is...
Explain what the credit terms of 2/10,1/30 mean. (Check all that apply.) The full payment is due within 10 days. The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date. The buyer can take a discount of 10% if the invoice is paid with 30 days of the invoice date. The full payment is due within a 30-day credit period. X-Mart purchased $300 of merchandise on account. Demonstrate the journal...
Chapter 5 - Basic Exercises Purchases Transactions Barans Company purchased merchandise on account from a supplier...
Chapter 5 - Basic Exercises Purchases Transactions Barans Company purchased merchandise on account from a supplier for $10,700, terms 2/10, n/30. Barans returned $2,500 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. $ 8,118 b. What account is debited by Barans Company to record the return? Accounts Payable Feedback Check My...
On December 15, 2017, Lisbeth Inc. (a U.S. company purchases merchandise inventory from a foreign supplier...
On December 15, 2017, Lisbeth Inc. (a U.S. company purchases merchandise inventory from a foreign supplier for 50,000 schillings. Lisbeth agrees to pay in 45 days after it sells the merchandise. Lisbeth makes sales rather quickly and pays the entire obligation on January 25, 2018. Currency exchange rates for 1 schilling are as follows: 0.30 December 15, 2017 December 31, 2017 917 January 25, 2018 January 31, 2018 Prepare all journal entries for Lisbeth Company in connection with this purchase...
A company purchased $2,500 of merchandise on July 5 with terms 2/10, n/30. On July 7,...
A company purchased $2,500 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $550 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is: Multiple Choice Debit Merchandise Inventory $1,950; credit Cash $1,950. Debit Cash $1,950; credit Accounts Payable $1,950. Debit Accounts Payable $1,950; credit Merchandise...
Holmes Company paid within the discount period for merchandise with a cost of $8,000; the payment...
Holmes Company paid within the discount period for merchandise with a cost of $8,000; the payment terms were 2/10, n/30. The journal entry to record this transaction is debit Cash $7,840; debit Merchandise Inventory $160; credit Accounts Payable $8,000. debit Accounts Payable $8,000; credit Cash $7,840; credit Merchandise Inventory $160. debit Cash $7,840; debit Cost of Goods Sold $160; credit Accounts Payable $8,000. debit Accounts Payable $8,000; credit Cash $7,840; credit Cost of Goods Sold $160.
A company that uses the periodic inventory system purchases merchandise inventory for $1,000 plus freight of $100 from Sunny Supplier Co., with credit terms 2/10,n/30. The company will record this transaction with a debit to: Check all that apply. accounts payable for $1,000 purchases for $1,000 freight in for $100 purchases for $1,100 accounts payable for $1,100
A company purchases merchandise Inventory for $1,000 plus freight of $100 from Field Supplier Co., with credit terms 2/10, n/30. The company will record this transaction in a perpetual inventory system with a debit to: Click the answer you think is right. accounts payable for $1,000 accounts payable for $1,100 merchandise inventory for $1,000 merchandise Inventory for $1,100 Rond about this Do you know the answer? No Idea Think so UR
On May 4, Roscoe Grocery received merchandise costing $3,500 with freight charges of $200 paid by the supplier and added to the invoice, terms 2/10, 1/30. Some goods were returned, and, on May 11, the supplier issued a credit memo in the amount of $400. Roscoe paid the amount due on May 14 and recorded the transaction with a debit to: Click the answer you think is right. accounts payable cash purchases discounts purchases returns and allowances
Explain what the credit terms of 2/10,1/30 mean. (Check all that apply.) The full payment is due within 10 days. The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date. The buyer can take a discount of 10% if the invoice is paid with 30 days of the invoice date. The full payment is due within a 30-day credit period. X-Mart purchased $300 of merchandise on account. Demonstrate the journal...
Chapter 5 - Basic Exercises Purchases Transactions Barans Company purchased merchandise on account from a supplier for $10,700, terms 2/10, n/30. Barans returned $2,500 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. $ 8,118 b. What account is debited by Barans Company to record the return? Accounts Payable Feedback Check My...
On December 15, 2017, Lisbeth Inc. (a U.S. company purchases merchandise inventory from a foreign supplier for 50,000 schillings. Lisbeth agrees to pay in 45 days after it sells the merchandise. Lisbeth makes sales rather quickly and pays the entire obligation on January 25, 2018. Currency exchange rates for 1 schilling are as follows: 0.30 December 15, 2017 December 31, 2017 917 January 25, 2018 January 31, 2018 Prepare all journal entries for Lisbeth Company in connection with this purchase...
Holmes Company paid within the discount period for merchandise with a cost of $8,000; the payment terms were 2/10, n/30. The journal entry to record this transaction is debit Cash $7,840; debit Merchandise Inventory $160; credit Accounts Payable $8,000. debit Accounts Payable $8,000; credit Cash $7,840; credit Merchandise Inventory $160. debit Cash $7,840; debit Cost of Goods Sold $160; credit Accounts Payable $8,000. debit Accounts Payable $8,000; credit Cash $7,840; credit Cost of Goods Sold $160.
Most questions answered within 3 hours.
-
An infinite sheet of charge that has a surface charge density of
39 nC/m2 lies in...
asked 57 seconds ago -
After watching the lectures I am still having a hard time
understanding these equations.
1. The...
asked 1 hour ago -
Testing:
H0:μ=56.9
H1:μ<56.9
Your sample consists of 23 subjects, with a mean of 56.3 and
standard...
asked 1 hour ago -
straight wire, labeled as Wire A, lies horizontally on a
tabletop and is oriented to run...
asked 1 hour ago -
For a Chi-Squared Goodness of Fit Test about a uniform
distribution, complete the table.
Round to...
asked 1 hour ago -
Milk of magnesia is only slightly soluble in water. Kc for the
reaction Mg(OHs)(s)>Mg2+(a) + 2OH-1(aq)...
asked 1 hour ago -
Excel's HYPGEOM.DIST function can be used to compute _____.
a. both hypergeometric probabilities and cumulative
hypergeometric...
asked 2 hours ago -
The rocket used for the human lunar missions was the Saturn V
rocket. At liftoff the...
asked 1 hour ago -
1. The East Street Bagel Shop has a weekly demand for 3,500
bagels, which they make...
asked 1 hour ago -
paraphrasing each paragraph
“Where two or more persons knowingly act together unlawfully,
the act of each...
asked 1 hour ago -
The lateral line system in fish is contained which of the
following?
chemoreceptors
photoreceptors
mechanoreceptors
odor...
asked 1 hour ago -
Find the y-intercept of y =-5 x. The y-intercept of y equals
negative 5 x is______...
asked 2 hours ago