5a. A company with a perpetual inventory system purchases 2,000 items of inventory for $50 per item. The goods are shipped to the company as FOB destination. The freight cost is $1,000. The company then sells 1,100 items for $70 per item. These goods are shipped FOB destination to the customer at a cost of $450. Assuming that these are...
Botit, Inc., purchased $5,000 of merchandise on account that was shipped on December 29, FOB shipping point. The goods arrived on January 3. Should Botit include or exclude this inventory from its balance sheet at its year end, December 31?
Oct. 1Purchased merchandise on account from Micron Ltd. at a cost of $86,000, terms 1/15, n/30, FOB shipping point.1Freight charges of $1,400 were paid by the appropriate party on the October 1 purchase of merchandise.2Returned for credit $4,000 of damaged goods purchased from Micron on October 1.6Purchased supplies for $2,800 cash.8Sold the remaining merchandise purchased from Micron...
Travis Company has just completed a physical Inventory count at year-end, December 31 of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $65,700. During the audit, the independent CPA developed the following additional Information a Goods costing $870 were being...
Presented below are selected transactions for Bridgeport Company during September and October of the current year. Bridgeport uses a periodic inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $45,000, FOB destination, terms 1/15, n/30. 2 The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 5...
The following information was extracted from the accounting records of Nimoy Mfg. LLP: On February 5, 2019, Nimoy Mfg. LLP ordered 250,000 pounds of material from its supplier at a total purchase price of $360,000. The materials were to be shipped via Scott Transporter Co. under FOB Shipping Point terms. On February 12, 2019, Nimoy Mfg. LLP received the goods...
At December 31, 2017 Vaughn Manufacturing's inventory records indicated a balance of $877000. Upon further investigation it was determined that this amount included the following: $170000 in inventory purchases made by Vaughn shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd • $111000 in goods sold by Vaughn with terms FOB destination...
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July 1 Purchased merchandise from Boden Company for $6,700 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $558. 3 Paid $125 cash...
Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron. Aug. 1 Purchased merchandise from Aron Company for $7,000 under credit terms of 1/10, n/30, FOB destination, invoice...
At December 31, 2016, Stellar Corporation reported current assets of $406,510 and current liabilities of $196,600. The following items may have been recorded incorrectly. 1. Goods purchased costing $21,000 were shipped f.。.b. shipping point by a supplier on December 28. Stellar received and recorded the invoice on December 29, 2016, but the goods were not included in Stellar's physical count...