Cinnamon Buns Company (CBC) started 2024 with $54,000 of inventory on hand. During 2024, $284,000 in inventory was purchased on account with credit terms of 2/10, 1/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $11,000. Inventory with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $320,000. CBC uses a perpetual inventory system. Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the inventory on hand at the beginning of 2024 was determined by a physical count that failed to realize that $12,000 of inventory was being held on consignment for Frosting R Us Incorporated. What is cost of goods available for sale, assuming CBC uses the gross method to record purchase discounts? Multiple Choice $324,680 $344,200 $321,200

Cinnamon Buns Company (CBC) started 2024 with $54,000 of inventory on hand. During 2024, $284,000 in inventory was purchased on account with credit terms of 2/10, 1/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $11,000. Inventory with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $320,000. CBC uses a perpetual inventory system. Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the inventory on hand at the beginning of 2024 was determined by a physical count that failed to realize that $12,000 of inventory was being held on consignment for Frosting R Us Incorporated. What is cost of goods available for sale, assuming CBC uses the gross method to record purchase discounts? Multiple Choice $324,680 $344,200 $321,200

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Cinnamon Buns Co. (CBC) started 2021 with $53,900 of merchandise on hand. During 2021, $288,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $10,900. Merchandise with an invoice amount of $3,000 was returned for credit. Cost of goods sold for the year was $302,000. CBC uses a perpetual inventory system.Assuming CBC uses the gross method to record purchases, ending inventory would be:
On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer. The entity allowed trade discounts of 15%, and 10%. Credit terms were 3/10, n/30 and the sale was made FOB destination. AAA Company paid 100,000 of the delivery cost. a. Compute the total amount of purchases to be included on the buyer’s inventory in the determination of cost of goods available for sale if payment was made beyond the discount period. b. What is the full amount received by AAA company if payment was made on June 11, 2023?
Jaded Corporation has the following account balances for the year-ended December 31, 2024. K In addition, the 12/31/23 balances for Accounts Receivable and Inventory are $45,000 and $95,000, respectively. dr Accounts Receivable Inventory Purchases Freight-In Purchases Discount Purchases Returns Purchase Allowances 32,000 20,000 480,000 5,000 Sales Revenue Interest Revenue Sales Returns & Allowances Sales Discounts Selling Expenses General & Administrative Exp 15,000 30,000 Other Operating Expenses Freight-Out 9,000 Interest Expense 2,000 Loss on Sale of Truck 5,000 What is the operating income for the period? OA. $1,146,000 OB. $1,167,000 OC. $1,156,000 O D. $1,176,000 $8,000 50,000 10,000 cr $ 4,000 3,000 1,000 1,850,000 1,000
On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account.…
Northwest Fur Co. started the year with S93,000 of merchandise inventory on hand. During the year, $450,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Northwest paid freight-in charges of $8,000. Merchandise with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $378,000. What is ending inventory? $153,743. $168,200. S163,748. S72,000.
Stefan Company provided the following data for the current year, the first year of operations. a. Purchase of merchandise at an invoice price of $4,750,000 excluding freight. Terms are 2 /10, n /30. b. Freight paid, $250,000. The freight is allocated to each purchase. c. Cash payment on purchases, $3,717,000, of which $1,617,000 was paid within the discount period. d. It is expected that all discounts on unpaid accounts payable will be lost. e. On December 31, one fifth of the merchandise remains on hand. Requirement: 1. Prepare journal entries to record the transactions using gross method and net method. 2. Compute the inventory and cost of sales under each method.
JYP began operation in 2016. For the year ended, the company has the ff details: Merchandise Purchases USD 6, 000, 000 Merchandise Inventory, Dec. 31 USD 2, 400, 000 Collection from customers USD 4, 365, 000 Note that all merch was marked to sell at 35% on selling price. All sales are made on a credit basis and all receivables are collectibl Determine and compute the balance of accounts receivable on year end.
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Halifax Fisheries Inc. began the month of March with $760,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 1.1 to 1. During the month, it completed the following transactions:Mar. 6 Bought $86,000 of merchandise on account. (The company uses a perpetual inventory system.) 11 Sold merchandise that cost $70,000 for $118,000. 15 Collected a $30,000 account receivable. 17 Paid a $32,000 account payable. 19 Wrote off a $14,000 bad debt against Allowance for Doubtful Accounts. 24 Declared a $1.75 per share cash dividend on the 41,000 outstanding common shares. 28 Paid the dividend declared on March 24. 29 Borrowed $90,000 by giving the bank a 30-day, 19% note. 30 Borrowed $110,000 by signing a long-term secured note. 31 Used the $200,000 proceeds of the notes to buy additional machinery.Required:Prepare a schedule showing Halifax Fisheries Inc.’s current ratio, quick ratio, and working capital after each of the transactions. (Round ratios to 2 decimal places and other…
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