Excel complete exercises E6-10 E6-10, E6-17, and E6-18 BE6–18 Refer to the BE6–1
ID: 2548851 • Letter: E
Question
Excel complete exercises E6-10 E6-10, E6-17, and E6-18
BE6–18 Refer to the BE6–11 Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000.
, but now assume that Shankar uses a periodic system to record inventory transactions. Record the purchase of inventory on February 2, including the freight charges.
E6–10 Sundance Systems has the following transactions during July.
July ?5
Purchases 40 LCD televisions on account from Red River Supplies for $2,500 each, terms 3/10, n/30.
July ?8
Returns to Red River two televisions that had defective sound.
July 13
Pays the full amount due to Red River.
July 28
Sells remaining 38 televisions from July 5 for $3,000 each on account.
Required:
Record the transactions of Sundance Systems, assuming the company uses a perpetual inventory system.
E6–18 Refer to the transactions in E6–10.
Required:
1.
Record the transactions of Sundance Systems, assuming the company uses a periodic inventory system.
2.
Record the period-end adjustment to cost of goods sold on July 31, assuming the company has no beginning inventory.
July ?5
Purchases 40 LCD televisions on account from Red River Supplies for $2,500 each, terms 3/10, n/30.
July ?8
Returns to Red River two televisions that had defective sound.
July 13
Pays the full amount due to Red River.
July 28
Sells remaining 38 televisions from July 5 for $3,000 each on account.
FIFO LIFO Weighted-Average Balance sheet: Ending inventory $2,200 $1,600 $2,000 Income statement: Sales revenue (800 × $15) Cost of goods sold Gross profit $12,000 8,400 $4.200 3,600 $12,000 7,800 $12,000 8,000 $4,000Explanation / Answer
1) Assuming the company uses a perpetual inventory system
Jul-05
Inventory
100,000
Accounts payable
100,000
Jul-08
Accounts payable
5,000
Inventory
5,000
Jul-13
Accounts payable
95,000
Inventory
2,850
Cash
92,150
95,000*3% = 2850
100,000 - 5,000 - 2850 = 92150
Jul-28
Accounts receivable
114,000
Sales revenue
114,000
Jul-28
COGS
92,150
Inventory
92,150
?
2) Assuming the company uses a periodic inventory system.
Jul-05
Purchases
100,000
Accounts payable
100,000
Jul-08
Accounts payable
5,000
Inventory
5,000
Jul-13
Accounts payable
95,000
Inventory
2,850
Cash
92,150
95,000*3% = 2850
100,000 - 5,000 - 2850 = 92150
Jul-28
Accounts receivable
114,000
Sales revenue
114,000
Jul-28
No journal entry required
3) Assuming the company has no beginning or ending inventory
Jul-31
COGS
92,150
Purchases return
5000
Purchases discount
2,850
Purchases
100,000
?
?
Jul-05
Inventory
100,000
Accounts payable
100,000
Jul-08
Accounts payable
5,000
Inventory
5,000
Jul-13
Accounts payable
95,000
Inventory
2,850
Cash
92,150
95,000*3% = 2850
100,000 - 5,000 - 2850 = 92150
Jul-28
Accounts receivable
114,000
Sales revenue
114,000
Jul-28
COGS
92,150
Inventory
92,150
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