Question

15 Exer On the role ore dan ory often speedbydes a f S aching the month of October the following tractions occurred wel l try to Oct. Purchased 10 b est 6 od 10 dies from the October 7 Returned defective tudies to 13 Team Mencarred one byde 14 Pid e company in til Sachfrom the fronde company, on account vertory to Te America for 20 each, on court cycle Company Prepare a ti m e to record the transactions proced e m e nthe (15)) and the company uses a perpetual inventory System (negative amous singether a negative si Stockholder's Equity Accounts Receivable inventory Accounts Payable Sales revenue Cost of goods sold Sales returns and allowances Cost of goods sold Click if you would like to show Work for this question Open Snow

Answer 1

we will post the entries into accounting equation

Total assets = total liabilities+shareholder's equity

	Cash	Account receivable	inventory	Account payable	common stock	revenue	expenses	dividend		explanation
October 4			$27,000(180 bicycle*$150)	$27,000						As purchased on account it will increase account s payable
6		$2500($250*10)				$2,500			sales revenue	Sold on account so it will increase account receivable
			-$1,500($150*10)				$1500		cost of goods sold	inventory will be reduced at $150 per bicycle and expense will be recorded
7			-$1200(8bicycle*$150)	-$1,200						inventory will be reduced and there will be lesser due on account payable due to return
13		-$250($250*1)				-$250				sales return
			$150				-$150			cost of goods sold
14	-$25,800			-$25,800 (180-8returned)*$150						cash paid against net pruchase