Question
In: Accounting
The following inventory transactions occurred at Zinc, Inc., which uses a perpetual inventory system: October 2...
The following inventory transactions occurred at Zinc, Inc., which uses a perpetual inventory system:
October 2 Purchased 50 units of inventory from supplier on credit. The goods cost $30 each and the credit terms were 2/10, n/30. The shipping costs were $100 under the terms FOB destination and Zinc received the inventory on October 3rd.
October 4 Returned 5 units of inventory from the October 2nd transaction to to the supplier.
October 6 Sold 15 of the units purchased on October 2nd for $50 each to customers for cash.
October 7 Accepted a return of one unit of inventory from an October 6th customer for a cash refund.
October 10 Established a petty cash fund for $300.
October 11 Paid the supplier for one-half of the inventory purchased on October 2nd, net of any returns.
October 15 Used $20 out of petty cash to pay for stamps (postage expense).
October 28 Purchased 10 units of inventory from a supplier on credit. The good cost #25 each and no credit terms were granted. The shipping costs were $50 under the terms FOB destination and Zinc received the inventory on November 2.
October 30 Paid the remaining balance owed to the supplier from the October 2nd transaction.
October 31 Replenished petty cash.
Using the space provided below and on the next page, record the appropriate journal entries for these transactions with the appropriate date (no journal entry description is required). Include only journal entries that relate to October business. If no journal entry is needed, write the transaction date and NO Entry.
Solutions
ekkarill92 answered 2 months agoRelated Solutions
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uses a perpetual inventory system with FIFO):
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The transactions listed below occurred in September 2018 for
Aquamarines. Aquamarines uses the perpetual inventory system and
estimates sales returns at the end of each month.
1) Using the General Journal tab, click Add Transaction to
journalize each transaction. Click Post Transaction once you
complete the entry, then repeat these steps for each transaction.
2) Click the Reports tab and review the results of recording these
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complete.
09/03/2018 - Purchased merchandise...
Jaywall Corporation, which uses a perpetual inventory system, recorded the following inventory transactions during 20X3. ...
Jaywall Corporation, which uses a perpetual inventory system,
recorded the following inventory transactions during 20X3.
Units
Unit Cost
Units
Selling Price
April 1
Beginning inventory
45
$8
25
Purchase
150
9
May 4
Purchase
65
10
16
Sale
120
$16
June 4
Purchase
50
12
(a) Using the FIFO cost formula, calculate the amount
of the cost of goods sold for the quarter ended June 30. (Show
calculations)
(b) Using the average cost formula, calculate the amount of ending...
During the month, the following transactions occurred for Trevor’s Supply Company. The company uses the perpetual inventory...
During the month, the following transactions occurred for
Trevor’s Supply Company. The company uses the
perpetual inventory method.
Dec. 1
Accepted a 4-month, 6% note from a customer in settlement of
$12,400 account.
3
Wrote off as uncollectible specific accounts totaling $680.
8
Purchased $17,200 of inventory on account, terms 2/10, n/30.
11
Sold $25,000 of inventory that cost $17,500, terms 1/15,
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12
Paid $13,750 for employee salaries.
15
Customers returned $8,000 of inventory sold on December
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following inventory transactions for the month of March.
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If the company uses the FIFO inventory costing method, the
amount of ending inventory reported on the balance sheet is:
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Ayayai Ltd. uses the perpetual inventory system and reports the
following inventory transactions for the month of June:
Date
Explanation
Units
Unit Cost
Total Cost
June
1
Beginning inventory
1,390
$4
$5,560.00
12
Purchases
2,230
5
11,150
15
Sale
(2,640
)
16
Purchases
4,580
6
27,480
23
Purchases
1,640
7
11,480
27
Sales
(5,460
)
Part 1
Determine the cost of goods sold and the cost of the ending
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final...
Ayayai Ltd. uses the perpetual inventory system and reports the following inventory transactions for the month...
Ayayai Ltd. uses the perpetual inventory system and reports the
following inventory transactions for the month of June:
Date
Explanation
Units
Unit Cost/Price
Total Cost
June
1
Beginning inventory
1,480
$5
$7,400
12
Purchases
2,340
6
14,040
15
Sale
(2,420
)
12
16
Purchases
4,280
7
29,960
23
Purchases
1,580
8
12,640
27
Sales
(5,580
)
15
alculate the gross profit for the month of June using (1) FIFO
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Wilderness Inc. uses a perpetual inventory system and follows ASPE standards. During September, the following transactions...
Wilderness Inc. uses a perpetual inventory system and follows
ASPE standards. During September, the following transactions
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FOB Shipping Point. 5 The necessary party paid the shipping fees of
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that were purchased Sept. 4 that were defective. 9 Sold backpacks
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Point....
The following transactions occurred in April and May. Both companies use a perpetual inventory system. Apr....
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Apr. 5
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6
The correct company paid freight costs of $250.
8
Blossom Company returned damaged merchandise to DeVito Company
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