41 waxs d merchandisers of musical instruments has provided the following details ma 4306756

41 waxs d merchandisers of musical instruments has provided the following details ma 4306756

41) WAXS-D, merchandisers of musical instruments, has provided the following details:

Mar.5

Inventory purchased

$800,000

Mar.8

Freight in

40,000

Mar.13

Purchase returns

60,000

Mar.14

Allowances by vendor

15,000

Mar.20

Payment made to vendor for purchases on March 5

?

Credit terms are: 3/20, n/45, FOB shipping. Calculate the net cost of inventory purchased assuming that there are no other inventory related transactions during the month.

A) $785,000

B) $740,000

C) $725,000

D) $743,250

42) A company purchased inventory for $2,200 on account, and recorded the following journal entry:

Merchandise Inventory

2,200

       Accounts payable

2,200

The vendor's invoice showed terms of 3/10, n/30. Give the journal entry for the payment of the invoice seventeen days after the invoice date.

Answer: 

Accounts Payable

2,200

       Cash

2,200

43) A company purchased inventory for $100,000 on account, and recorded it as follows:

Merchandise Inventory

100,000

       Accounts Payable

100,000

The vendor's invoice showed terms of 3/10, net 30. Give the journal entry for the payment of the invoice seven days after the invoice date, assuming that the vendor uses the perpetual inventory system.

44) A merchandiser, following the perpetual inventory system, has the following transactions duringAugust, 2015:

Date     Transaction                               Amount ($)

Aug. 5Purchases on account300,000

Aug. 9Paid for transportation of goods purchased25,000

Aug. 10Purchase returned20,000

Aug. 15Paid for goods purchased on August 5?

Credit terms of invoice are 2/15, n/45. Give journal entries for the above transactions.

45) Reid Art Supply Company uses a perpetual inventory system. The company had the following transactions during August, 2015:

August 5: Purchased $2,900 of merchandise on account. Freight and credit terms were FOB shipping point, 3/15, n/60.

August 9: Paid transportation costs of $440 for the Aug. 5 purchase.

August 10: Returned $600 of defective merchandise that had been purchased on Aug. 5.

August 15: Paid for the merchandise purchased on Aug. 5.

Give journal entries for August 10 and 15.

46) Oscar Packers received an allowance from the vendor for an amount of $400. Give the journal entry for this transaction. The company uses a perpetual inventory system.

47) Portian Merchandisers has purchased merchandise on account and paid $450 for freight in. Give the journal entry for freight paid. (Assume a perpetual inventory system)

48) A company using the perpetual inventory system, purchased merchandise on account for $5,000. Give the journal entry to record this transaction.

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