Reference no: EM13913718
Accounting for Inventory Orders, Purchases, Sales, Returns, and Discounts
On October 1, the Business Students Society (BSS) placed an order for 110 golf shirts at a unit cost of $27, under terms 3/10, n/30. The order was received on October 10, but 20 golf shirts had been damaged in shipment. On October 11, the damaged golf shirts were returned. On October 12, the BSS complained that the remaining golf shirts were slightly defective so the supplier granted a $230 allowance. The BSS paid for the golf shirts on October 13. During the first week of October, the BSS received student and faculty orders for 90 golf shirts, at a unit price of $48.00, on terms 3/10, n/30. The golf shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with the golf shirts, so BSS permitted them to be returned or given an allowance of $8 per shirt. Half of the golf shirts were returned on October 21, and the remaining 45 customers were granted the allowance on account on October 22. The customers paid their remaining balances during the week of October 25.
Required:
1.Prepare journal entries for the transactions described above, using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1.Record the placement of the order for golf shirts.
2.Record the inventory purchased on account.
3.Record the return of damaged inventory.
4.Record the allowance received for the defective inventory purchased.
5.Record the payment in full.
6.Record the sales revenue on account.
7.Record the cost of goods sold.
8.Record the return of unsatisfactory merchandise sold.
9.Record the cost of goods returned.
10.Record the allowance granted for the defective inventory sold.
11.Record the customers payments in full.
2.Report the financial effects of the above transactions in a multistep income statement for the month ended October 31. Assume operating expenses, other than cost of goods sold, are $180 and income tax expense is $150.
3.Determine the percentage of net sales that is available to cover operating expenses other than cost of goods sold.
|
What is the amount of the cash flow to creditors
: Pete’s Boats has beginning long-term debt of $180 and ending long-term debt of $210. The beginning and ending total debt balances are $340 and $360, respectively. The interest paid is $20. What is the amount of the cash flow to creditors?
|
|
Continuous process for manufacture
: a proposal is set out below for a continuous process for manufacture of a fine chemical immediate.
|
|
About the odd dividend policy
: Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $5 per share for each of the next five years, and then never pay another dividend. If you require ..
|
|
What is the investments equivalent annual annuity
: Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type..
|
|
Accounting for inventory orders purchases sales returns
: Accounting for Inventory Orders, Purchases, Sales, Returns, and Discounts
|
|
About the mature manufacturing firm
: Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $7.65, but management expects to reduce the pay out by 5 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a sha..
|
|
What is the appeal for pepsi print advertisement
: what is the tag line for Pepsi print advertisement and what is message strategy (cognitive, affective, conative and their sub-categories) for Pepsi print advertisement?
|
|
Bonds make semi annual payments-common stock
: Given the following information for Bellevue Power Co, find the WACC. Assume the company's tax rate is 35 percent. Debt: 5,000. 7% coupon bonds outstanding, $ 1000 par value, 20 years to maturity, selling for 92 percent of par; bonds make semi annual..
|
|
Compute the federal income taxes to withhold
: Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee.
|