DS Unlimited has the following transactions during August. August 6 Purchases 56 handheld game devices on account from GameGirl, Incorporated, for $130 each, terms 1/10, n/60. August 7 Pays $330 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl six game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 36 game devices purchased on August 6 for $150 each to customers on account. The total cost of the 36 game devices sold is $4,871.00. Required: 1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system. 2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $1,894.

DS Unlimited has the following transactions during August. August 6 Purchases 56 handheld game devices on account from GameGirl, Incorporated, for $130 each, terms 1/10, n/60. August 7 Pays $330 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl six game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 36 game devices purchased on August 6 for $150 each to customers on account. The total cost of the 36 game devices sold is $4,871.00. Required: 1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system. 2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $1,894.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 8EA: Record the journal entry for each of the following transactions. Glow Industries purchases 750...

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DS Unlimited has the following transactions during August. August 6 Purchases 70 handheld game devices on account from GameGirl, Inc., for $200 each, terms 1/10, n/60. August 7 Pays $400 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl six game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 50 game devices purchased on August 6 for $220 each to customers on account. The total cost of the 50 game devices sold is $10,212.50. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system.
DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Incorporated, for $240 each, terms 1/10, n/60. August 7 Pays $440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for $260 each to customers on account. The total cost of the 58 game devices sold is $14,145.00. Required:1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system.2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,927.
DS Unlimited has the following transactions during August. August 6 Purchases 86 handheld game devices on account from GameGirl, Incorporated, for $280 each, terms 1/10, n/60. August 7 Pays $480 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl six game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 66 game devices purchased on August 6 for $300 each to customers on account. The total cost of the 66 game devices sold is $18,691.00. Required:1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system.2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $3,965.
DS Unlimited has the following transactions during August. August 6 Purchases 54 handheld game devices on account from GameGirl, Incorporated, for $120 each, terms 1/10, n/60. August 7 Pays $320 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl four game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 34 game devices purchased on August 6 for $140 each to customers on account. The total cost of the 34 game devices sold is $4,257.00. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to 2 decimal places.)
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 5.5% service charge for sales on its credit card. Access deducts a 4.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $600 of merchandise on credit (that had cost $240) to Natara Morris. 5 Sold $7,100 of merchandise (that had cost $2,840) to customers who used their Zisa cards. 6 Sold $6,152 of merchandise (that had cost $2,461) to customers who used their Access cards. 8 Sold $4,300 of merchandise (that had cost $1,720) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $739 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
Bennett Retailers had the following transactions in November and December: November 20 Sold 20 items of merchandise to Customer B at an invoice price of $6,500 (total); terms 3/10, n/30. November 25 Sold two items of merchandise to Customer C, who charged the $800 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 3 percent credit card fee. November 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $10,000 (total); terms 3/10, n/30. November 29 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6 Customer D paid the account balance in full. December 20 Customer B paid the November 20 invoice in full. Required: Compute net sales for the two months ended December 31. Note: Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.
Answer the question using the picture format... DS Unlimited has the following transactions during August. August 6 Purchases 86 handheld game devices on account from GameGirl, Incorporated, for $280 each, terms 1/10, n/60. August 7 Pays $480 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl six game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 66 game devices purchased on August 6 for $300 each to customers on account. The total cost of the 66 game devices sold is $18,691.00. Required:1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system.2. Record the period-end adjusting entry to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $3,965.
Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30. May3 Pays cash for freight costs of $200 on books purchased from Readers. May5 Returns books with a cost of $400 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,000 on account. Questions: Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment.
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfair completes the following transactions in June. June 4 Sold $500 of merchandise on credit (that had cost $250) to Natara Morris. 5 Sold $6,800 of merchandise (that had cost $3,400) to customers who used their Zisa cards. 6 Sold $5,616 of merchandise (that had cost $2,808) to customers who used their Access cards. 8 Sold $4,890 of merchandise (that had cost $2,445) to customers who used their Access cards. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $395 balance in McKee’s account stemmed from a credit sale in October of last year. 18 Received Morris’s check in full payment for the purchase of June 4. Required:Prepare journal…
Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Additional information: Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms Lamplight returns ten light fixtures (receiving a credit amount for the total purchase price per fixture of $20 each) on August 3. Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice date August 19, with no discount terms. Lamplight pays $100 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30? What account is used to recognize this outstanding amount?
Littleton Books has the following transactions during May.May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30.May 3 Pays cash for freight costs of $200 on books purchased from Readers.May 5 Returns books with a cost of $400 to Readers because part of the order is incorrect.May 10 Pays the full amount due to Readers.May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,000 on account.Required:1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system.2. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment.
The following transactions were selected from among those completed by Bennett Retallers in November and December: November 20 November 25 Sold 20 items of merchandise to Customer 8 at an invoice price of $6,400 (total); terms 2/10, n/30. Sold two items of merchandise to Customer C, who charged the $700 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 1 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,600 (total); terms 2/10, n/38. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. December 6 Customer D paid the account balance in full. December 20 Customer 8 paid in full for the invoice of November 20. November 28 November 29 Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. Note: Do not round your…