Net method to record purchases

Reference no: EM13912796

James Company began the month of October with inventory of $26,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $38,500 on October 12, 2013. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $610 were paid in cash. b. On October 18 the company returned merchandise costing $4,100. The return reduced the amount owed to the supplier. The merchandise returned came from beginning inventory, not from the October 12 purchase. c. On October 31, James paid for the merchandise purchased on October 12. d. During October merchandise costing $19,650 was sold on account for $30,200. e. It was determined that inventory on hand at the end of October cost $40,205.

Reference no: EM13912796

Questions Cloud

Foreign exchange rate fluctuations : A. Identify two possible solutions to reduce the volatility effect of foreign exchange rate fluctuations.What costs would arise if you implemented each of your solutions?

Comparative balance sheet : Comparative balance sheet data for Tanzanite Imporium follow. In addition, new equipment was purchased for $60,000, payment consisting of $40,000 cash and a long-term note for $20,000. The short-term note payable was arranged with a supplier to finan..

An amortization table : Compute the amount of cash Rahaman Co. received on 1/1/2015.Prepare an amortization table for 2015 through 2019 for the bonds. Assume amortization is recorded on interest payment dates.Give all journal entries Rahman Co. entered for the year 2016

Cash flows direct method : Statement of Cash Flows - Direct Method.Based on an analysis of the cash and other accounts, the following information was provided by the controller of Black Iron, Inc., a manufacturer of wood-burning stoves, for the year 20Y1.

Net method to record purchases : James Company began the month of October with inventory of $26,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $38,500 on October 12, 2013. Terms of the purchase were 3/10, n/30..

Financial statements : Wanda will record a cash inflow from operating activities of $10,000 in its 2015 financial statements. Wanda will record a cash inflow from investing activities of $10,000 in its 2015 financial statements. Wanda will record a cash inflow from inves..

Wages from a part-time job : O.2 Compute the 2015 standard deduction for the following taxpayers. Margie is 15 and claimed as a dependent by her parents. She has $800 in divi- dends income and $1,400 in wages from a part-time job.

The standard deduction : 21. LO.2 Sam and Abby are dependents of their parents, and each has income of $2,100 for the year. Sam’s standard deduction for the year is $1,050, while Abby’s is $2,450. As their income is the same, what causes the difference in the amount of the s..

Difference in the amount of the standard deduction : Sam and Abby are dependents of their parents, and each has income of $2,100 for the year. Sam’s standard deduction for the year is$1,050, while Abby’s is $2,450. As their income is the same, what causes the difference in the amount of the standard de..

User Account

All Pages