Your tpa connect. nstructions i help October 4 Purchase 130 unts of m vertory on
ID: 2540328 • Letter: Y
Question
Your tpa connect. nstructions i help October 4 Purchase 130 unts of m vertory on ccournt thom wakuig Co for s50 per one en 2030 October 5 Pay cash for ght charges selated to the October 4 purchase $600 October 9 Retun 10 defective unts trom the October 4 purchese and receive cre October 12 Pay Walugi Co inu October 15 1 Receive ul payment from customers related to the saon Ccobt 16 October 20 Puchase 100 units of nventory from Wisluigi Co for $70 per unt tome 20 30 October 22 Sell 100 unts of invertory to customers tor cash s8,000 300 points Required: 1. Assuming that Bowser Co. uses a FIFO perpetual inventory Systiem to maintam its invenoryias neord e transactons (It no entry is required for a t account teld.) select "No journal entry required" in the first st Vwyournal entry October 04 No Transaction Recordes hapter 13docExplanation / Answer
Answer:
Date
Description
Debit $
Credit $
4-Oct
Inventory (130*50)
$6,500
Accounts payable
$6,500
5-Oct
Inventory
$600
Cash
$600
9-Oct
Accounts Payable (10*50)
500
Inventory
500
12-Oct
Accounts Payable (6500-500)
6000
Inventory (5500*2%)
120
Cash (6500-1000)*98%
5880
15-Oct
Accounts receivable
$12,800
Sales Revenue
$12,800
cost of good sold
8440
Inventory (W.N.1)
$8,440
19-Oct
cash
$12,800
Accounts Receivable
$12,800
20-Oct
Inventory (100x70)
$7,000
Accounts payable
$7,000
22-Oct
cash
$8,000
Sales Revenue
$8,000
cost of good sold
6840
Inventory (W.N.2)
$6,840
Working notes for the above answer is as under
Working note :1
October 15 Cost of inventory sold:
= ($50 × 50 units) + ($54 × 110 units)
=$8,440
Working note:2
October 22 Cost of inventory sold:
= ($54 × 10 units) + ($70 × 90 units)
=$6,840
__________________________________________________
2
Date
Description
Debit $
Credit $
31-Oct
Cost of Goods Sold
350
Inventory
350
(10*70)-(10*35)
___________________________________________
3
Bowser Co
Multiple-step Income Statement (partial)
For the month of October
Net Sells
20800
Cost of goods sold*
15630
Gross profit
5170
* Cost of goods sold equals the cost of the units sold ($15,280) + write down to market value ($350).
Date
Description
Debit $
Credit $
4-Oct
Inventory (130*50)
$6,500
Accounts payable
$6,500
5-Oct
Inventory
$600
Cash
$600
9-Oct
Accounts Payable (10*50)
500
Inventory
500
12-Oct
Accounts Payable (6500-500)
6000
Inventory (5500*2%)
120
Cash (6500-1000)*98%
5880
15-Oct
Accounts receivable
$12,800
Sales Revenue
$12,800
cost of good sold
8440
Inventory (W.N.1)
$8,440
19-Oct
cash
$12,800
Accounts Receivable
$12,800
20-Oct
Inventory (100x70)
$7,000
Accounts payable
$7,000
22-Oct
cash
$8,000
Sales Revenue
$8,000
cost of good sold
6840
Inventory (W.N.2)
$6,840
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.