Question

This Question: 20 pts 23 of 33 (24 complete) This Test: 140 pts possible TH NO i More Info Х RE th Nov 4 Purchased $5,200 of merchandise on account from Best Deal Tire. Terms, 3/15, n/45, FOB shipping point Best Deal Tire prepaid the $250 shipping cost and added the amount to the invoice 7 Purchased $500 of supplies on account from Office Maxx. Terms, 4/10, 1/30, FOB destination 9 Sold 51,100 (cost, $425) of merchandise on account to A. Right. Terms, 4/15, n/45, FOB destination 11 Paid $95 freight charges to deliver goods to A Right. 13 Returned $400 of the merchandise purchased on November 4 and received a credit. 15 Sold $1,550 (cost, $475) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7 18 Paid Best Deal Tire the amount due from the November 4 purchase in full. 20 A Right returned $300 (cost, $180) of merchandise from the November 9 sale 22 Purchased $3,500 of inventory, Paid cash. 23 Received payment in full from A Right for the November 9 sale. 30 The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $120 2 ch Print Done

Answer 1

Ans 1.		Adjusting Journal entries
Sr No	Date	Account Title	Dr $	Cr $
1	Nov 4.	Inventory	5,044
		Accounts Payable		5,044
		Inventory	250
		Accounts Payable		250
2	Nov 7.	Supplies	480
		Accounts Payable		480
3	Nov 9.	Accounts Receivable	1,056
		Sales Revenue		1,056
	Nov 9.	Cost of Goods Sold	425
		Inventory		425
4	Nov 11.	Freight Out	95
		Cash		95
5	Nov 13.	Accounts Payable	388
		Inventory		388
6a	Nov 15.	Cash	1,550
		Sales Revenue		1,550
		Cost of Goods Sold	475
		Inventory		475
7	Nov 16.	Accounts Payable	480
		Cash		480
8	Nov 18.	Accounts Payable	4,906
		Cash		4,906
9a.	Nov 20.	Sales Return & Allowance	288
		Accounts Receivable		288
9a.	Nov 20.	Cost of Goods Sold		180
		Inventory	180
10	Nov 22.	Inventory	3,500
		Cash		3,500
11	Nov 23.	Accounts Receivable		768
		Cash	768
12a.	Nov 30.	Sales Return & Allowance	300
		Customer Refund Liability		300
12b.	Nov 30.	Cost of Goods Sold		120
		Inventory	120

Ans 2.
Net Sales -Cost of Goods Sold = Gross Profit
	Net Sales =Sales Revenue-Sales Return & Allowance		$                 2,018
		Total Cost of Goods Sold =	$                    600
		Gross Profit =	$                 1,418