Question

In: Accounting

Splish Brothers Trading uses a perpetual inventory system and the earnings approach to recognize revenue. The...

Splish Brothers Trading uses a perpetual inventory system and the earnings approach to recognize revenue. The company offers credit terms to select customer. The following are transactions of Splish Brothers Trading with some of its customers.

Feb. 5 Sold merchandise to Classen for $46,000, terms 1/10, n/60.
6 Classen returned $5,200 of merchandise.
11 Wrote off an account receivable from B. Wong of $1,600, after making repeated efforts to collect.
15 Classen paid Splish Brothers the amount owing.
28 Collected $890 from a collection agency who managed to collect an account from Mancini that had been previously written off by Splish Brothers.


Prepare the journal entries to record the above transactions. Ignore any inventory or cost of goods sold entries for the purposes of this question.

Solutions

Expert Solution

Date Account Titles Debit Credit
Feb-05 Accounts Receivable-Classen $         46,000
     Sales Revenue $         46,000
Feb-06 Sales Returns and Allowances $           5,200
     Accounts Receivable-Classen $           5,200
Feb-11 Allowance for Doubtful Accounts $           1,600
     Accounts Receivable-B.Wong $           1,600
Feb-15 Cash $         40,392
Sales Discount $              408
     Accounts Receivable-Classen $         40,800
Feb-28 Accounts Receivable-Mancini $              890
     Allowance for Doubtful Accounts $               890
Feb-28 Cash $              890
     Accounts Receivable-Mancini $               890

Related Solutions

Han Merchants has a periodic inventory system, uses the earnings approach to recognize revenue, and has...
Han Merchants has a periodic inventory system, uses the earnings approach to recognize revenue, and has the following accounts in its chart of accounts for its income statement. For each account listed below: (a) Assuming Han Merchants prepares a multiple-step income statement, specify how the account should be classified: (b) Indicate if the closing of this account will require a debit or a credit. (a) (b) Account Classification Closed with Debit or Credit 1 Freight out            ...
Splish Brothers Inc. uses a periodic inventory system. Details for the inventory account for the month...
Splish Brothers Inc. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 360 $6.00 $2160 Purchase, 1/15/2022 180 ..6.40 1152 Purchase, 1/28/2022 180 ..6.60 1188 An end of the month (1/31/2022) inventory showed that 290 units were on hand. If the company uses LIFO, what is the value of the ending inventory? $1836 $1740 $1892 $2760
Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inventory system for its merchandise inventory. The...
Inventory Costing Methods-Perpetual Method Fortune Stores uses the perpetual inventory system for its merchandise inventory. The April 1 inventory for one of the items in the merchandise inventory consisted of 130 units with a unit cost of $335. Transactions for this item during April were as follows: April 9 Purchased 40 units @ $355 per unit 14 Sold 80 units @ 560 per unit 23 Purchased 20 units @ 360 per unit 29 Sold 40 units Required a. Calculate the...
Inventory Costing Methods-Perpetual Method Kali Company uses the perpetual inventory system for its merchandise inventory. The...
Inventory Costing Methods-Perpetual Method Kali Company uses the perpetual inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $45. Transactions for this item during June were as follows: June 5 Purchased 40 units @ $50 per unit 13 Sold 50 units @ $95 per unit 25 Purchased 40 units @ $53 per unit 29 Sold 20 units@ $110 per unit Required...
Inventory Costing Methods—Perpetual Method Arrow Company is a retailer that uses the perpetual inventory system. August...
Inventory Costing Methods—Perpetual Method Arrow Company is a retailer that uses the perpetual inventory system. August 1 Beginning inventory 80 units of Product A @ $1,600 total cost 5 Purchased 100 units of Product A @ $2,116 total cost 8 Purchased 200 units of Product A @ $4,416 total cost 11 Sold 170 units of Product A @ $4,800 total sale Calculate the inventory cost of item A on August 11 (after the sale) using (a) first-in, first-out, (b) last-in,...
A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases...
A company uses a perpetual inventory system. The company's beginning inventory of shoes and the purchases during a month as as follows: Beginning Inventory Jan 1: 16 pairs at $10 ea Purchase Jan 11: 14 pairs @ $12 ea Purchase Jan 20: 23 pairs at $15 ea On Jan 14 the company sold 25 units of shoes. The other 28 units remained in inventory at Jan 31. Question 1: Assuming the company uses the average cost flow assumption what is...
a company uses the perpetual inventory system purchased inventory for $970,000 on account with terms of...
a company uses the perpetual inventory system purchased inventory for $970,000 on account with terms of 3/7, n/20 which of the following records the payment made 15 days after the date of invoice
Instructions Hahn Flooring Company uses a perpetual inventory, system.
Hahn Flooring Company uses a perpetual inventory, system. A. The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on hand. Assume any shrinkage is a normal amount. B. Sales returns of $125,000 and merchandise returns of $80,000 are estimated for the current year's sales. Journalize the December 31 adjusting entries based on the above transactions. Refer to the Chart of Accounts for exact wording of account titles.
The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system. Inventory:...
The inventory data of Bilal Inc. is provided below, The company uses perpetual inventory system. Inventory: 1st March = 200 units @ $4.00 (purchased) Purchases: 12th March = 500 units @ $4.50 (purchased) 15th March = 400 units @ $4.75 (purchased) 17th March = 828 units @ $5.00 (purchased) Sales: 20th March = 1928 units sold Instructions Under a perpetual inventory system, determine the cost of goods sold and ending inventory for the month of March under FIFO method
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month...
Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of March. Beginning Inventory - 150 units at $81 March 7 Sold 70 units March 11 Purchase 200 units at $85 March 12 Sold 220 units If the company uses the FIFO inventory costing method, the amount of ending inventory reported on the balance sheet is:
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT