Question

Mackalya is an office secretary at the "All American Office Products Company." This Company sells office supplies and office equipment. The secretary fills the copy machine with paper. Did the secretary use inventory as described in Chapter 4? IfMackalya did not use inventory, what did she use? What is inventory? Suppose Mackalya was out of paper in the office; so she went out into the sales area of the facility and took 8 boxes of paper from the sales area and brought them back to use in the office. What journal entry should be made. When a Company sells inventory, the dollars leave the inventory account and go to what account? Make sure to answer all parts of this question.

Answer 1

Answer:-

1 ) .Did the secretary use inventory as described in Chapter 4?

No, the secretary did not utilize the stock .

2 ).If Mackalya did not use inventory, what did she use?

She should utilize stationery.

3 ) .  What is inventory?

• Stock is a bookkeeping term in which the business for the most part bargains.
• It alludes to merchandise that are in different phases of being prepared available to be purchased, for example, completed products stock, work in process stock and crude material stock.

4 ) . Suppose Mackalya was out of paper in the office; so she went out into the sales area of the facility and took 8 boxes of paper from the sales area and brought them back to use in the office. What journal entry should be made :-

• Assume the cost of each case is $25

Particulars	Debit	Credit
Stationery	= 8 * $25 = $200
Record payable		$200

5 ) .When a Company sells inventory, the dollars leave the inventory account and go to what account?

At the point when an organization offers stock , the dollars leave the stock record and go to cost of products sold record .

(i) .

Record receivable

Deals

(At the point when hoods are sold on layaway)

(ii) .

Cost of merchandise sold

Stock

(To record cost of merchandise sold )