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In: Accounting
Lush Garden supplies uses a perpetual inventory system. Lush Garden supplies has these account balaces at...
Lush Garden supplies uses a perpetual inventory system. Lush Garden supplies has these account balaces at July 31, 20X6, prior to making the year end adjustments: Inventory (Beg bal: 11,500, End bal: 18,000), COGS (bal: 76,000), Sales Revenue (161,000).
A year ago, the NRV (net realizable value) cost of ending inventory was 12,000 which exceeded cost of 11,500. Lush Garden Supplies has determined that the NRV cost of the July 31, 20X6, ending inventory is 14,800. Prepare the company's 20X6 Income Statement through gross profit to show how the company would apply the net realizable value to its inventories.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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
Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of...
Jayson Products uses a perpetual inventory system. At year-end,
the Inventory account had a balance of $280,000, but a complete
year-end physical inventory indicated goods on hand costing only
$273,000. Jayson should:
ernabe, Inc. uses the perpetual inventory system. On September 1, 2019, the inventory account in Bernabe,...
ernabe, Inc. uses the perpetual inventory
system. On September 1, 2019, the inventory account in Bernabe,
Inc.'s general ledger has a balance of $50,000 (assume normal
balance).
On September 19, 2019, Bernabe purchases $200,000 worth of
merchandise with credit terms
1/10, net 30.
On September 21, 2019, Bernabe returns $10,000 worth of defective
merchandise.
On September 24, 2019, Bernabe sells inventory having a cost of
$11,000 for a selling price of $22,000. Title of the goods
transferred to the buyer...
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system....
Hair World Inc. is a wholesaler of hair supplies. Hair World
uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a.
Sold merchandise for cash (cost of merchandise $16,797).
$27,200
b.
Received merchandise returned by customers as unsatisfactory
(but in perfect condition), for cash refund (original cost of
merchandise $180).
300
c.
Sold merchandise (costing $3,325) to a customer, on account
with terms 2/10, n/30.
7,000
d.
Collected half of the balance owed by the...
Larry’s Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The...
Larry’s Building Supplies (LBS) is a local hardware store. LBS
uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a.
Sold merchandise for cash (cost of merchandise $345,350).
$
725,000
b.
Received merchandise returned by customers as unsatisfactory
(but in perfect condition) for cash refund (original cost of
merchandise $4,900).
7,500
c.
Sold merchandise (costing $10,200) to a customer on account
with terms n/30.
17,000
d.
Collected half of the balance owed by the customer...
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system....
Hair World Inc. is a wholesaler of hair supplies. Hair World
uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis: a. Sold merchandise
for cash (cost of merchandise $8,797). $11,200 b. Received
merchandise returned by customers as unsatisfactory (but in perfect
condition), for cash refund (original cost of merchandise $60). 100
c. Sold merchandise (costing $2,375) to a customer, on account with
terms 2/10, n/30. 5,000 d. Collected half of the balance owed by
the...
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system....
Hair World Inc. is a
wholesaler of hair supplies. Hair World uses a perpetual inventory
system. The following transactions (summarized) have been selected
for analysis:
a.
Sold merchandise
for cash (cost of merchandise $46,797).
$
87,200
b.
Received
merchandise returned by customers as unsatisfactory (but in perfect
condition) for cash refund (original cost of merchandise $630
).
1,050
c.
Sold merchandise
(costing $9,025 ) to a customer on account with terms n/60.
19,000
d.
Collected half of
the balance owed...
Hair Care Inc. is a wholesaler of hair supplies. Hair Care uses a perpetual inventory system....
Hair Care Inc. is a wholesaler of hair supplies. Hair Care uses
a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a.
Sold merchandise for cash (cost of merchandise $29,197)
$
51,600
b.
Received merchandise returned by customers as unsatisfactory
(but in perfect condition), for cash refund (original cost of
merchandise $400)
640
c.
Sold merchandise (costing $4,950) to a customer, on account
with terms 3/10, n/30
10,000
d.
Collected half of the balance owed by...
Larry’s Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The...
Larry’s Building Supplies (LBS) is a local hardware store. LBS
uses a perpetual inventory system. The following transactions
(summarized) have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $313,350). $
665,000
b. Received merchandise returned by customers as unsatisfactory
(but in perfect condition) for cash refund (original cost of
merchandise $4,100). 6,300
c. Sold merchandise (costing $8,280) to a customer on account
with terms 2/10, n/30. 13,800
d. Collected half of the balance owed by the...
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning...
Ranns Supply uses a
perpetual inventory system. On January 1, its inventory account had
a beginning balance of $6,900,000. Ranns engaged in the following
transactions during the year.
Purchased merchandise
inventory for $9,700,000.
Generated net sales of
$25,000,000.
Recorded inventory
shrinkage of $10,000 after taking a physical inventory at
year-end.
Reported gross profit
for the year of $15,000,000 in its income statement.
a. At
what amount was Cost of Goods Sold reported in the company's
year-end income statement?
b. At...
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