The company purchased merchandise on account for 50500 on

Assignment Help Accounting Basics

Reference no: EM13566908

James Company began the month of October with inventory of $34,000. The following inventory transactions occurred during the month:

a.The company purchased merchandise on account for $50,500 on October 12, 2013. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $690 were paid in cash.

b.On October 18 the company returned merchandise costing $4,900. 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 $20,850 was sold on account for $31,800.

e. It was determined that inventory on hand at the end of October cost $58,430.

Required:

1.Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold.

2.Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.

Reference no: EM13566908

Questions Cloud

What is meant by an advance collection what is meant by a : what is meant by an advance collection? what is meant by a deferral or deferred income? is there an association between

Bach corp had additions to retained earnings for the year : bach corp. had additions to retained earnings for the year just ended of 430000. firm paid out 175000 in cash dividends

If the real exchange rate between the united states and : 1 the theory of purchasing power parity cannot fully explain exchange rate movements becausea all goods are identical

Check the grammar mistakes make the personal statement more : check the grammar mistakes make the personal statement more professional and readable.born in wenzhou a high-speed

The company purchased merchandise on account for 50500 on : james company began the month of october with inventory of 34000. the following inventory transactions occurred during

Diana company a sole proprietorship sells only one product : diana company a sole proprietorship sells only one product. the regular price is 160. variable costs are 55 of this

The theory of ppp suggests that if one countrys price level : 1 the theory of ppp suggests that if one countrys price level rises relative to anothers its currency shoulda

If you required rate of return does not change how much : you are willing to pay 15625 to purchase a perpetuity that will pay you and your heirs 1250 each year forever. if you

Und will receive 2000 of donation next year the donation : und will receive 2000 of donation next year. the donation payments are going to increase at a constant rate every year

User Account

All Pages