Homework Answers
Answer: B. Inventory for $1,080
Explanation:
Journal Entry under perpetual inventory system if cash paid within discount period:
| Date | Account title and Explanation | Debit | Credit |
| March 9 | Accounts payable [60,000 - 6,000 returns] | $54,000 | |
| Inventory [$54,000 x 2% cash discount] | $1,080 | ||
| Cash | $52,920 | ||
| [To record cash paid for accounts payable] |
Therefore, Santa Fe should credit Inventory for $1,080 & Cash for $52,920.
.
i.Option A is incorrect because Purchase discount is not come under perpetual inventory system and it is come under periodic inventory system
ii.Option C is also incorrect because Purchase discount is not come under perpetual inventory system and it is come under periodic inventory system
iii.Option D is incorrect because inventory should be credited for $1,080
Thus, Option B Inventory for $1,080 is correct.
Add Answer to:
QUESTION 44 Santa Fe Corporation uses the perpetual inventory method. On March 1, it purchased $60,000...
A company using the perpetual inventory system purchased inventory worth $500.000 on account with crede terms...
A company using the perpetual inventory system purchased inventory worth $500.000 on account with crede terms of 3/16, 1/40. Defective inventory of 570.000 was returned 3 days later, and the accounts were appropriately adjusted if the company paid the invoice 30 days later, the journal entry to record the payment would be O A 5430.000 debit to Accounts Payable and 5430,000 credit to Cash O . 5500.000 debit to Accounts Payable and $500,000 credit to Cash OC. 3500,000 debit to...
Use the following information to answer the next_2_questions, Roley Corporation uses the gross method of accounting...
Use the following information to answer the next_2_questions, Roley Corporation uses the gross method of accounting for discounts. On July 1, 2019, Roley purchased $60,000 of inventory, terms 2/10, 1/30, FOB shipping point. Roley paid freight costs of $1,200 in cash on July 1. On July 3, Roley returned damaged goods and received credit of $6,000. 8. What dollar amount will Roley show for accounts payable on July 9, 2019? a. $60,000 b. $52.920 c. $61,200 d. $54,000 9. Roley...
sales returns and allowances and sales discounts are EX5#13: Mack's Corporation, uses a perpetual inventory system,...
sales returns and allowances and sales discounts are
EX5#13: Mack's Corporation, uses a perpetual inventory system, it purchased on account $2,000 of merchandise on July 5. Credit terms are 2/10, n/30. It returned $400 of the merchandise on July 9. When Mack's pays its bill on August 5, the journal entry will require A. Debit to Accounts Payable for $2000. B. Credit to Accounts Payable for $1600. c. Credit to Cash for $1600. D. Credit to Cash for $1568. 20...
2. Dublin, Inc. uses the periodic inventory system. On February 1, the corporation purchased inventory on...
2. Dublin, Inc. uses the periodic inventory system. On February 1, the corporation purchased inventory on account for AED 16,000. The terms were 4/10, 1/30. On February 2, it returned damaged goods worth AED 600 to the supplier. What is the amount of the purchase discount? AED (Round your answers to the nearest dirham.). Paid 15 February
Brief Exercise 13-1 Martinez Corporation uses a periodic inventory system and the gross method of accounting...
Brief Exercise 13-1 Martinez Corporation
uses a periodic inventory system and the gross method of accounting
for purchase discounts. (a) On July 1, (1) Martinez purchased
$80,000 of inventory, terms 1/10, n/30, FOB shipping point. (2)
Martinez paid freight costs of $1,207. (b) On July 3, Martinez
returned damaged goods and received credit of $8,000. (c) On July
10, Martinez paid for the goods. Prepare all necessary journal
entries for Martinez. (If no entry is required, select "No Entry"
for...
Question 1 Sheffield Corporation uses a periodic inventory system and the gross method of accounting for...
Question 1 Sheffield Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Sheffield purchased $85,000 of inventory, terms 3/10, n/30, FOB shipping point. (2) Sheffield paid freight costs of $1,094. (b) On July 3, Sheffield returned damaged goods and received credit of $8,500. (c) On July 10, Sheffield paid for the goods. Prepare all necessary journal entries for Sheffield. (If no entry is required, select "No Entry" for the...
Brief Exercise 13-1 Martinez Corporation uses a periodic inventory system and the gross method of accounting for purchas...
Brief Exercise 13-1 Martinez
Corporation uses a periodic inventory system and the gross method
of accounting for purchase discounts. (a) On July 1, (1) Martinez
purchased $80,000 of inventory, terms 1/10, n/30, FOB shipping
point. (2) Martinez paid freight costs of $1,207. (b) On July 3,
Martinez returned damaged goods and received credit of $8,000. (c)
On July 10, Martinez paid for the goods. Prepare all necessary
journal entries for Martinez. (If no entry is required, select "No
Entry" for...
Santa Fe Retailing purchased merchandise “as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000.
Santa Fe Retailing purchased merchandise “as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. The merchandise had cost Mesa $16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. View transaction list 1 Record Santa Fe Retailing's purchase of merchandise...
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John's account was credited by the supplier. 3. Merchandise costing $3,700 was sold for $7,000 in cash. Required: Prepare the necessary journal entries to record these...
Perpetual System—Recording Inventory Related Entries using the Gross Method Columbus Music Inc. maintains a perpetual inventory...
Perpetual System—Recording Inventory Related Entries using the Gross Method Columbus Music Inc. maintains a perpetual inventory system and uses the gross method to record purchases. The following transactions occurred during the month of March 2020, for its major inventory line. Prepare journal entries for transactions a through e. Note: Round you answers to the nearest whole dollar. a. Purchase of merchandise inventory on March 1, 2020, for $14,400 on account, terms 1/10, n/30. b. Paid cash of $144 for freight...
A company using the perpetual inventory system purchased inventory worth $500.000 on account with crede terms of 3/16, 1/40. Defective inventory of 570.000 was returned 3 days later, and the accounts were appropriately adjusted if the company paid the invoice 30 days later, the journal entry to record the payment would be O A 5430.000 debit to Accounts Payable and 5430,000 credit to Cash O . 5500.000 debit to Accounts Payable and $500,000 credit to Cash OC. 3500,000 debit to...
Use the following information to answer the next_2_questions, Roley Corporation uses the gross method of accounting for discounts. On July 1, 2019, Roley purchased $60,000 of inventory, terms 2/10, 1/30, FOB shipping point. Roley paid freight costs of $1,200 in cash on July 1. On July 3, Roley returned damaged goods and received credit of $6,000. 8. What dollar amount will Roley show for accounts payable on July 9, 2019? a. $60,000 b. $52.920 c. $61,200 d. $54,000 9. Roley...
sales returns and allowances and sales discounts are
EX5#13: Mack's Corporation, uses a perpetual inventory system, it purchased on account $2,000 of merchandise on July 5. Credit terms are 2/10, n/30. It returned $400 of the merchandise on July 9. When Mack's pays its bill on August 5, the journal entry will require A. Debit to Accounts Payable for $2000. B. Credit to Accounts Payable for $1600. c. Credit to Cash for $1600. D. Credit to Cash for $1568. 20...
2. Dublin, Inc. uses the periodic inventory system. On February 1, the corporation purchased inventory on account for AED 16,000. The terms were 4/10, 1/30. On February 2, it returned damaged goods worth AED 600 to the supplier. What is the amount of the purchase discount? AED (Round your answers to the nearest dirham.). Paid 15 February
Brief Exercise 13-1 Martinez Corporation
uses a periodic inventory system and the gross method of accounting
for purchase discounts. (a) On July 1, (1) Martinez purchased
$80,000 of inventory, terms 1/10, n/30, FOB shipping point. (2)
Martinez paid freight costs of $1,207. (b) On July 3, Martinez
returned damaged goods and received credit of $8,000. (c) On July
10, Martinez paid for the goods. Prepare all necessary journal
entries for Martinez. (If no entry is required, select "No Entry"
for...
Brief Exercise 13-1 Martinez
Corporation uses a periodic inventory system and the gross method
of accounting for purchase discounts. (a) On July 1, (1) Martinez
purchased $80,000 of inventory, terms 1/10, n/30, FOB shipping
point. (2) Martinez paid freight costs of $1,207. (b) On July 3,
Martinez returned damaged goods and received credit of $8,000. (c)
On July 10, Martinez paid for the goods. Prepare all necessary
journal entries for Martinez. (If no entry is required, select "No
Entry" for...
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: 1. John's purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John's account was credited by the supplier. 3. Merchandise costing $3,700 was sold for $7,000 in cash. Required: Prepare the necessary journal entries to record these...
Most questions answered within 3 hours.
-
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 14 minutes ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 1 hour ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 2 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 2 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 2 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 2 hours ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 2 hours ago -
Please help me with this question. Consider Aldi’s current and
potential geographic markets (see Exhibit 4...
asked 2 hours ago -
What are the main components of the fermentation process and
give an explanation of each? Include...
asked 2 hours ago -
Explain which types of cells in the body (belonging to which
organs, etc.) are sensitive to...
asked 2 hours ago -
A single cable supports an 703-kg elevator car. What is the
tension in the cable when...
asked 2 hours ago -
among the three different ways to link CSS specifications to an
HTML document (inline CSS, document...
asked 2 hours ago