Merchandising transactions problems with answers Merchandise is returned to the Dollar Store from the November 13 transaction. The updated balance of merchandise inventory as at March 1 Answer to Problem 6. 1 K 242. 20-Paid Freight on April 18 purchase, 700 ₱ 23-Sold merchandise for 16,400 Summit Co. The cost of these pants to Hip Pants was $20 per pair, and the sales price was $60 per pair. August 12: After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe’s received a price reduction from Waters of $500 off the $5,000 of goods purchased. At the beginning of January, the ledger of Arrow showed Cash of P500,000 and Miguel, Capital, of P500,000. The questions cover topics such as entries for sales and returns, accounts with Accounting Cycle of a Merchandising Business PROBLEM 1: TRUE OR FALSE 1. This increases Cash (debit) and decreases (credit) Merchandise Inventory-Phones because the merchandise has been returned to the manufacturer or supplier. In March, the business recorded a purchase of merchandise on account, payment of delivery costs, return of purchased items, Why It Matters; 6. The returned items are priced at $280 and cost $140; the items were not damaged and were returned to inventory. Answered Merchandising Transactions. 0 270, 90, 270, Inventory, End + COGS 330,000 = 90,000 + 240, Case 6: Increase in Inventory 27 Answer Answer Answer Answer Answer Answer Merchandise returned by Lind Stores. 6- Returned merchandise acquired to Mama. Philippines. In our above Q8 and Q9, we have used last transaction date as ending of period. June 2. June 4. The returned items are priced at $200 and cost $100; the items were not damaged Merchandising Worksheet, Study notes for Accounting. Unlock. 10-3 Journalizing Merchandising Transactions Under Periodic TAGBILARAN HARDWARE GENERAL JOURNAL. Perpetual inventory system requires entities to record any sale or purchase of inventory at the time they are sold or purchased, hence, an entry should be made on July 01 to record the purchase transaction. 2 Compare and Contrast Perpetual versus Periodic Inventory Systems LO 6. doc / . 2/10,n/30, FOB Homework: Merchandising Operations Exercises Assignment i 4 Following are the merchandising transactions of Dollar Store. Q Merchandising operations problems Problem #2 On May 15, 2020, November 1: Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 8 Purchased merchandise on credit from Orcajada Co. The chart of accounts for a merchandising entity differs from that of a service entity. A merchandising company generally has the same type of balance sheet as a service company except inventory is reported as a current asset. The transactions need to be recorded in the appropriate special journals like sales Answer to Merchandising operations- accounting journal entries Problem #16 Log in Join Q Merchandising operations problems Problem #2 On May 15, 2020, PROFESSOR: Problem #14 Journalizing Merchandising Transactions Virginia Ruben. Course. Step 2. Definition of terms: General journal – book of original entry. In that month, the company completed the following transactions: GJ-1 205,000 205, 5 Cost of merchandise sold. Freight In 8000 merchandise and either the receipt of cash or the account receivable. 9 Returned merchandise purchased from LOWKEY Company, P380. Sales 21,000 The operating cycle of a business is the sequence of transactions by which the company normally generates its revenue and its cash receipts from customers. The returned items are priced at $215 and cost $108; the items were not damaged ₱ 18-Bought merchandise from PICHOLO (MESDA), 14,200, FOB shipping point, terms, ₱ 2 10, n 30 respectively. Merchandise transactions The document defines journal, ledger, and trial balance. , during March: Mar. 12 After negotiations with Jane Co. 2 of the Code apply to the following matters? (a) The sale of an insurance policy? (b) The sale of This is a sample quiz with questions and answers about Basic Merchandising. Received debit memo (DM) number 2003 from Q PLEASE HELP ME ANSWER MERCHANDISING TRANSACTIONS PROBLEMS Question 8 Take me to the text Partially correct Annie's Edibl. ; Footing – means adding all the debits and credits vertically. Students shared 1658 documents in this course. Physical possession is necessary for inventory to be included in the business’ assets. 15 Received balance due from Green Ruby for the August 5 sale. The document records various journal entries in March and April 2020 for a business. 3. Hint It will help to identify each receivable and payable, for example, record the purchase on August 1 in Accounts Payable-Lane. xlsx), PDF File (. Paid MESDA on the April 18 purchase, P 9,000. Q Put your answer here (Column C) (Multiple Choice) Managerial accounting techniques are: A. Does Art. 3 K 240. n/30, FOB destination, P74,000. 1 Sold merchandise on account, $77,550 with terms 1/10, n/30, using the net method under a perpetual inventory system. Saint Paul University. for the month of September are shown below: Sept 3 Sold merchandise to Mr. 30 Retail Sales Merchandiser Interview Questions and Answers. 2 8. Accountancy 83% (6) Students also viewed. There is an increase in an asset account (debit Service Equipment, $16,000), a decrease in another asset (credit Cash, $8,000, the amount paid), and an increase 1. It defines key terms like merchandising business, merchandise, operating cycle, and accounting cycle. As a View 4 - Merchandising Short Problems (Answers). 6-3 Example Exercise 6-3 Q PLEASE HELP ME ANSWER MERCHANDISING TRANSACTIONS PROBLEMS Question 8 Take me to the text Partially correct Annie's Edibl. 17 Purchased office equipment from Westco on credit, $5,000, 6/45. July 1 st: Ramu started business with a capital of 75,000 : 8 Merchandise Inventory 513, Accounts Payable 448, Cash 65, Purchases on account. Mr. May 20 Sydney pays Troy for the 6. Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. a. 5: Basic Answer to Purchase Transactions- Merchandising problem #10 Purchase There is no entry for trade discount. Reply. Problem 2 involves purchases Read carefully the following problem and answer as required. COGS, FIFO = 10x45 + 25x50 + 15x. 3 K 238. 5 2,900 Accounts Payable 2,900 Cash Nov. Transaction #4: On December 7, the company acquired service equipment for $16,000. BAP; Notes; Problems; Prb 6. Record them into the journal and show postings in the ledger and balance the accounts. C. August 1 Purchased merchandise from Aron Company for $10,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. ; Trial balance – is a list of all accounts with open balances. 7: Accounts Payable Prepare a worksheet for a merchandising company. Merchandising Operations- Perpetual Inventory Entries practice The following transactions Relates to ELM: 1. Check my Prepare journal entries to record the following merchandising transactions of Carter's, which uses the perpetual inventory system. (a) Disagree. Study Resources. The transactions for the month of May & chart of accounts are as follows: Mr Riego invested P800, 000 cash in his business May 1 Purchased Journalizing Merchandising Transactions - Free download as Word Doc (. 2 applies, its rules may favor one party (such as the implied warranty of merchantability that automatically is given to many buyers). 5) The merchandise sold to Baird had cost $4,000. 1. November 1 Dollar Store purchases merchandise for $1, 900 on ACCT 211 Homework 4 Merchandising Operations Problems Assignment solutions complete answers Just put your values given and automatically provide answers for you! Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. During December, they started the first month of their operation. merchandising, or manufacturing). Problem - 1 . 3 Journalize the following merchandise transactions: a. Problem-1: BSAAAAA accounting cycle of merchandising business quiz true or false inventory refers to the goods that merchandising business has Derivatives Problems; Fs ratios; Toaz quizzer with answer; 93-13 Handout CPAR VAT - Practice Materials; Related documents. The note carries a 20% interest per annum. pdf from ACC 15 at Ateneo de Manila University. Cr. 3 Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System LO 6. 108. Problems: Set A. doc - Free download as Word Doc (. Nov. 4 Analyze and Record Transactions for the Sale of Merchandise Using the Chapter 6—Accounting for Merchandising Businesses [Multiple Choice] Merchandise is ordered on November 12; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 15; the merchandise is received by the buyer on November 17; the entry is made in the seller's accounts on November 15. August 12: After negotiations Accounting questions and answers; Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the Merchandise purchased in cash. May 1Purchased merchandise on account from Black Wholesale Supply for $7,200, terms 1/10, n/30. 2 3 5 6 7 9 10 11 12 13 15 Answer to Problem 15 Journalizing Merchandising Transactions Marichu Answer to Problem 15 Journalizing Merchandising Transactions Marichu AI Chat with PDF. LO7: Define special journals and explain their One problem associated with merchandising is the fact that you want to display what consumers want. TRUE. The transportation cost is added because it is part of the cost of merchandise hence it is added/debited to Merchandise Inventory. General Journal: Date: Account Debit Credit Jul-03: Accounts Receivable 1,200 Sales Revenue 1,200 To record the sale of Jersies to Flagstaff Sporting Goods on account PROBLEM A Arrow Hardware Store completed the following merchandising transactions in the month of January 2020. on account, $\$ 23,400$, terms $2 / 10, \mathrm{n} / 30$. On April 6 paid freight cost of $900 on merchandise purchased from BNZ. January 3 Purchased merchandise on account from Depot Wholesale Supply P56,000, terms 2/10, n/30. Compute for COGS using (a) FIFO and (b) WAM. Download Accounting Transaction Exercises with Answers and more Exercises Accounting in PDF only on Docsity! Fall 2020 11th ed. ; Cross-footing – adding the amounts horizontally. This document provides three accounting problems related to merchandising businesses. This guide simplifies the process of Use the following information to answer questions 54 – 59: On December 1, your company began operations. 29 Received Tux' s cash payment for the amount due from the August 19 sale less the price allowance from August EXERCISES: Sample Transactions PROBLEM 1. ), A multiple-step income statement will have all of the following main parts except:, A purchase return refers to merchandise a ___ (buyer/seller/creditor) purchased, but then Transactions for the month of February are as follows: Feb. for a merchandising company are the same as for a service company. on account P504, Accounting for Merchandising Illustrative Problems Myrna C. LO6: Account for additional merchandising transactions related to purchases and sales. CHAPTER 4. Merchandising companies have financial transactions that include: purchasing merchandise, paying for merchandise, storing inventory, selling merchandise, and collecting customer payments. The merchandise had cost $6,250. It includes purchase-related Video answers for all textbook questions of chapter 6, Merchandising Transactions, Principles of Accounting Volume 1: Financial Accounting by Numerade Sample-Problem-Merchandising-Answers - Free download as Word Doc (. , terms n/30 FOB shipping point, P60,000. Janet Matuguinas Trading Company engaged SOL. At the beginning of May, Cullumbers' ledger showed Cash of $7,200 and Common Stock of $7,200. Sydney pays $480 cash to Express Shipping for delivery charges on the merchandise. INFORMATION INCLUDED: a. 1 Collected P113,000 from customers on account. Merchandise is shipped either thru Cash and Cash Equivalents Basic Problems with Answers; Valuation; English. 7 Sold merchandise on credit to Lacson Co. It is the selling of merchandise, instead of providing a service, that makes the activities of a merchandising There are two systems for recording merchandising transactions: the perpetual system and the periodic system. 21 Sold merchandise to Ulsh for $9,000 under credit terms of 1/10, n/30, FOB shipping point, invoice dated July 21. points. LO 6. Exercise 3 further explains that a perpetual system continuously updates (1) May 1, 20×1: Purchased 260 units of merchandise at $10 per unit and paid $2,600 in cash. The document provides information on the sales amount recorded and cash received for each Required by the BIR. The cost of the goods sold was $41,350. Transaction Nature of Transaction Type of Journal. Preview the document. For example, if a company receives a cash payment from a customer, Transaction 1: Issues $20,000 shares of common stock for cash. ANSWERS TO QUESTIONS 1. 011 and Record the transactions using special journals. This will result in a compound journal entry. Cost of Goods Sold 684, Merchandise Inventory 684, To record cost of goods sold. Associate Professor 1 Illustrative Problems Answers/Solutions 1 2 A P84,000 P82,320 B This document contains 10 multiple choice questions about accounting for merchandising businesses. Take this free retail math test and assess your knowledge on calculating different retail metrics. b. 2 Compare and Contrast Perpetual versus Periodic Inventory Systems; 6. 1: Inventory: $2,900 Accounts Payable $2,900: Nov. A typical operating cycle for a merchandising company starts with having cash available, purchasing inventory, selling the merchandise to customers, and finally collecting 2Purchased $5,050 of merchandise from Angolac Suppliers; terms 2/10, n/20, FOB shipping point. November 5: Dollar Store pays cash for the November 1 purchase. 6. Cullumber Hardware Store completed the following merchandising transactions in the month of May. Terms: FOB Shipping Point, 3/10, n/30. 10 out of 3. paid the invoice within the discount period. pdf), Text File (. Chapter 2 Question Review . 6Collected the amount owing from Avery & Wiest regarding the June 1 sale. Purchased merchandise November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. It includes journal entries for purchases and returns between a seller and buyer, Issued Check No. xls / . All credit sales are 2/10, n/30. 4a Analyze and Chapter 7 Inventory: Merchandising Transactions 289 Application Questions Group A . Problem 13 -Journalizing Merchandising Transactions. 28, 2018. I’ve also worked with inventory management Can you discuss a time when you had to make a quick decision to solve a merchandising issue? Merchandising is a fast Following are the merchandising transactions for Dollar Store. Merchandising Answers. The Pound Co. An inexperienced accountant for Stahr Company made the following errors in recording merchandising transactions. ANS: F DIF: 2 OBJ: 03. Dizon Fruits recorded various sales and cash receipt transactions in April. - Purchases of inventory on credit and payments to Journalizing Merchandising Transactions, Problem #12 - Free download as Excel Spreadsheet (. Merchandise transactions Entity A had the following transactions: (1) May 1, 20×1: Purchased 260 units of merchandise at $10 per unit and paid $2,600 in cash. (a) The document discusses solutions to exercises related to merchandising accounting. for $3,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. Gross Profit = $16,000 - ($10,000 x 96%) = $6,400 Note: The payment term of 4/10, n/60 implies the normal credit period is 60 days but if the company pays within 10 days it will get a discount of 4% from the supplier. Lowe’s sent Tux a $500 credit memorandum toward the $3,000 invoice to resolve the issue. A had various business transactions including starting the business with Answer to Merchandising operations problems Problem #2 On May 15, 2020, the AI Chat with PDF. Account for purchases and sales of merchandise in a perpetual inventory system. 7 Refunded $700 to customer Transaction: Merchandise is returned to the Dollar Store from the November 13 transaction. (b) The measurement of income is conceptually the same. 29 Accounting transactions for a merchandising business track sales transactions and purchase and inventory transactions. Q Purchase Transactions- Merchandising problem #10 Purchase Transactions Aug. sneha on April 19, 2021 at 9:17 am Why stock 17000 is not mentioned in solution for problem 3 please reply. Date: Account Items and Explanation: Debit: Credit: 6/01: Purchases Transaction No. 1 K Short-Answer Essay 236. Sem Plang Merchandising Perpetual Problem With Answers - Free download as Excel Spreadsheet (. The first problem involves transactions from January 1-10, 2020 including purchases, sales, and asset acquisitions. 120011 to Zel Trading as full payment of the account, Voucher No. 5Sold merchandise to Gelgar for $11,300; terms 2/5, n/15, FOB destination (cost of sales $7,850). Please note that in periodic inventory as used in Q8 and Q9, the purchase account is used and records are updated at end of period. ANS: T The merchandise was restored to inventory. 14 At Parker 's request, Perez's paid $600 cash for freight charges on the August 1 purchase, reducing the Journalizing Merchandising Transactions. On October 5, MDMaxx bought 50 pairs of jeans on account from Zinc Co. It is recorded in the chronological order and it also helps in Ultimate Guide to Accounting for Merchandising Business is your go-to resource for mastering the essential steps in recording transactions. 24 Ulsh requested a price reduction on the July 21 sale because the merchandise did not meet specifications. It also reviews common business documents used like purchase orders, invoices, receipts, debit/credit memos. 120010 to Hook Forwarders. concerning problems with the merchandise purchased on August 8, received a credit memo from Jane granting a price reduction of $500. The document contains journal entries for problem Journalizing Merchandising Transactions. xlsx - Sheet 1. Since CBS already paid in full for their purchase, a full cash refund is issued. Finally, it explains the periodic and perpetual inventory methods for recording merchandising Accounting questions and answers; Problem 4-2A (Static) Preparing journal entries for merchandising activities LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual PROBLEM SOLVING: MERCHANDISING PROBLEM (PERPETUAL INVENTORY SYSTEM) The Riego Hardware Store was organized on May 1 of the current year by Mr. It then provides two problems to practice journal entries, ledger accounts, and preparing a trial balance. _CHAPTER 10_ACCTG CYCLE OF A MERCHANDISING BUSINESS - Free download as Word Doc (. Log in Join. 0 Why It Matters. Irwin, a customer on account, P560,000 FOB shipping point. GJ-2 61,400 93,0 00 13 Payment discount TY Traders GJ-3 4,078 88,9 22 15 Cost of merchandise returned GJ-3 6,400 95,3 22 17 Purchase of merchandise on P5. July 1 Answer to Merchandising operations problems- preparing of journalize entries Problem 12. The cost of the merchandise sold is $\$ 14,000$. 1 Compare and Contrast Merchandising versus Service Activities and Transactions; 6. Answer to PLEASE HELP ME SOLVE THESE MERCHANDISING TRANSACTIONS It is 2 Question No. Question: PROBLEM #17 Journaling Merchandising Transactions Transactions for the Mariano Lerin Bookstore for March 2019 folowe Mar. Dollar Co. The steps in the accounting cycle are the same for both a merchandising company and a service company. 3: Basic Merchandising Transactions (Perpetual Inventory System) 3. Merchandising businesses acquire merchandise for resale to customers. 88 % Q Merchandising operations problems Problem #2 On May 15, 2020, the Guzon Book Distributors acquired for resale books on a. 3 Sold merchandise on Baird returned merchandise from the August 5 sale that had cost Lowe’s $500 and was sold for $1,000. Service business activity is rendering service, for example, designing and sewing clothing apparels similar to her own shop. Prepare journal entries to record these transactions. Aug. 1 Dollar Store purchases merchandise for $1,200 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. Calma, CPA, Ph. P5 (LO 2, 3) Kern’s Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. 9 Siogo Shoes sold Sole Mates 160 pairs of hiking boots on account, terms 2/10, n/30. August 1 Purchased merchandise from Aron Company for $6,000 under credit terms of 1/10, n/30, FOB destination, This document provides an introduction to merchandising business. 1 Dollar Store purchases merchandise for $2,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. 3. 1 Purchased merchandise from Lane Conpany for $11,300 under credit terns of 1/10, n/30, FOB Accounting questions and answers; PROBLEMS: SHOW YOUR WORK!!!! Merchandising Operation, Adjusting Entries, and Closing Entries (45 points) In November 2019, Devine Distributing Company was formed. 11 Paid the amount due from July 3 transactrion. in full. GJ-2 500 154,4 00 11 Cost of merchandise sold. 20. The operating cycle of a business is the sequence of transactions by which the company normally generates its revenue and its cash receipts from customers. Determine whether each of the following characteristics relates to a merchandising or service business. 5) Sold merchandise to Baird Corp. ) Both Merchandise Inventory-Phones increases (debit) and Cash decreases (credit) by $18,000 ($60 × 300). At the end of June, Ready-Set-Go's inventory consisted of suitcases costing £1,200. August 12: After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe’s received a price reduction from Waters of $900 off the $9,000 of goods purchased. 5A Merchandising Transactions (LO6-3, Problem 6. Answered over Find step-by-step Accounting solutions and the answer to the textbook question Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual ACTIVITY 11: Accounting Cycle _Merchandising Business Problem ABS Merchandising company had the following transactions in July. 15 Paid 15th month salary, P8,000. At the end of May, Kern’s inventory consisted of books pur- chased for $1,800. Homework: Merchandising Operations Exercises Assignment i Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. for $50 [10 action figures x $5 each]. Personal Development: Quarter 2 Module 5 Social Influence. Merchandise Inventory is our new current asset account. Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 in Accounts Payable—OLB. 1 Sold merchandise to O. It asks students to prepare journal entries for the seller and buyer under different scenarios like periodic vs perpetual inventory, FOB shipping terms, and VAT registered vs non-registered businesses. 3 Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System; If the answer is yes, the company will then analyze the information for how it affects the financial statements. Sold merchandise on account, $7,500 with terms of 2/10, n/30. Ramu has the following transactions in the month of July. Answered over 90d ago. The perpetual system records transactions as they occur through debit and credit entries. Pages. . Number of pages. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Lane. Test your understanding of basic merchandising transactions with this quiz covering the relationships of producer, merchandiser, and consumer, business documents used, journal entries, pricing, and trade discounts. 8. Paid salaries of the staff P25, 000, Voucher No. It provides 5-46 CHAPTER 5 Accounting for Merchandising Operations. 2 applies may determine the outcome of a case. Expert Help. The returned goods had cost Troy $737. Virginia Ruben Candles engaged in various merchandising The text illustrates how to record transactions related to the purchase and sale of merchandise under the perpetual inventory system. for $5,600 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. 18 Paid the amount Accounting questions and answers; Problem 5-1A (Static) Preparing journal entries for merchandising activities LO P1, P2 Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. There are two methods for recording sales transactions when the seller offers its customer a Sample-Problem-Merchandising-Answers - Free download as Word Doc (. amouning 7, 13- Paid the merchandise purchased to Lola Co. 10 Accounts Receivable 855, 0 Sales 855, Sales on account. 13. 13 Purchase merchandise P12,300 and additional supplies P450 for cash. The document provides information about value added tax (VAT) in the Philippines, including true/false questions and multiple choice exercises about VAT exemptions. During June, the following merchandising transactions occurred. Because of inventory, a Matching Statements 235. Hint: It will help to identify each Crim-procedures-questions-and-answers compress. Merchandising Business_Sample Problem (answers) - Free download as Excel Spreadsheet (. 6 Received payment less the discount. Accounts receivable of P210,000 is related to a sale to Royal Co. Accountancy (BSA) 999+ Documents. Percival Archer Riego engaged in a whole sale trading business. The merchandise had cost $1,500. Accounting for Merchandising Operations Recording transactions related to the purchase of merchandise can be tricky as the entries change depending on whether the journal entries are for the BUYER or the Practice Problems 1. 5 t take the trouble to invest the cash while waiting to pay the bill. BAINTE1L_Merchandising Sample Problems - Free download as Word Doc (. The Journalizing merchandising transactions Lenore Homewares engaged in the following transactions in October: Oct. MAN. Problem #17 Journalizing Merchandising Transactions Transactions for the Mariano Lerin Bookstore for March 2020 follows: Purchased merchandise on credit from Digao Publishers, Prepar journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method. Dr. On June 20, it returned $440 of that merchandise. 2 Merchandising Transactions (perpetual inventory system) with Discounts – The Seller. Merchandising or trading business activity means the company is engaged in the buying and selling of finished goods or merchandise, for example drug store. Toribio Cayanan Tires Sold merchandise to Perry Corp. 7: Appendix- Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System; 6. A typical operating cycle for a merchandising company starts with having cash available, purchasing inventory, selling the merchandise to customers, and finally collecting Study with Quizlet and memorize flashcards containing terms like Problem 1: Whether Art. Accounting questions and answers; Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system and the gross method. Problem 1 CBA Hardware Store, a non VAT enterprise, completed the following merchandising transactions in the month of January. 15 Received balance due fron Green Ruby for the August 5 sale 17 Purchased office equipment from Westco on credit, 55,800, 1/45 18 Paid the amount due Jane Woking Notes for each transaction: Transaction No - 1) On Nov 1, Merchandise is purchased on credit so the Merchandise Inventory Account is debited and Account Payable is credited by $2,000. LO5: Discuss the factors to be considered in selecting an inventory system. Download. Requirement (a): Type of journal. 3 Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System; 6. A36. Sold merchandise for 28. Business; Accounting; Accounting questions and answers; Show me the steps to solve ASAP Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system and the gross method. Bought merchandise for cash P 12,300. Wilson Retail Company provided its trial balance as of December 31, 2016 and transactions that occurred in January 2017. Exercise 1 identifies perpetual and periodic inventory systems. Wendy Cortez Wish Enterprise sold merchandise with a list price of 250,000 on March 1, 2021 at different trade discounts and credit terms. 7 Received collections from customers billed on sales of P48,600 on July 5. The document contains multiple choice questions and answers related to accounting transactions including purchases, sales, returns, payments, and discounts. Unfortunately, there is no definite way to determine what consumers want. 5A Merchandising Transactions (LO6-3, L06-6) The following is a series of related transactions between Siogo Shoes, a shoe wholesaler, and Sole Mates, a chain of retail shoe stores Feb. dentify the differences between service and merchandising companies. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Purchases 600000. 1 – Sold merchandise on account costing P8,000 for P10,000; terms 2/10, n/ Periodic System Accounts Receivable 10 Transfer pricing problems and answers. 2. Troadio Cunanan Tires entered into several transactions in July 2020 involving the purchase Paid P550 freight on the same day. The document is a general journal for a business for the month of October 2016. Baird returned merchandise from the August 5 sale that had cost Lowe’s $500 and was sold for $1,000. Deduct amount of trade discount will be deducted from Purchase amount. ATENEO DE MANILA UNIVERSITY JOHN GOKONGWEI SCHOOL OF P2 The transactions for MCJ Co. Identify the type of journal each of the transactions above shall be recorded. On April 7 purchased equipment on account for $30000. August 1 Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. The amount used in this transaction is the sales price of the merchandise. Name and RELATED) TRANSACTIONS JUNE 15 Sold to D merchandise on cash basis, P10,000 [OR#005] Paid freight on merchandise sold to D, P800 [CV#009] 16 Sold to E merchandise worth P15 Weygandt, Accounting Principles, 10th edition Learn with flashcards, games, and more — for free. Merchandising Answers lenore loqueque homewares general journal for the month of october 2019 date account titles and explanations 2019 oct. 2 Rented office space paying two month’s rent in FAR1 (1st 2022-2023) Accounting For Merchandising Business EXERCISE PROBLEMS PART 3. Sold merchandise on credit to Detoya Books Shop, terms 1/10, n/30, FOR shipping point, P10,000. on Dec. ANS: T DIF: Easy OBJ: 05- NAT: AACSB Analytic | AICPA FN-Measurement. The document contains 5 accounting problems involving journal entries for various merchandising transactions with different terms. Answer to . 16 Received refund for poor quality Answer to REQUIRED: Journal Entry - Merchandising Business- Periodic Method Q Purchase Transactions- Merchandising problem #10 Purchase Transactions Using T-accounts for Purc. 12 After negotiations with Lee Corporation concerning problems with the purchases on August 8, Perez's received a credit memorandum from Lee granting a price reduction of $700 off the $5,760 of goods purchased. docx), PDF File (. AP-1A LO 2 Suppose that on March 15, 2019, both Company A and Company B sold inventory with a cost of $40,000. November 13 Accounts Receivable $2,484 Sales $2,484 FUNDAMENTALS OF ACCOUNTING - MERCHANDISING OPERATIONS : TERMS OF TRANSACTIONS. ; General ledger – book of final entry. Practice She uses a Perpetual Inventory System. Accountancy 83% (6) 19. Journalizing transactions. The amount used in this transaction is the cost of the merchandise. Since service businesses do not hold merchandise for sale, they will not have any costs 3rd-Meeting-PrelimAccounting-Business-Transactions-and-Accounting-Financial-Report - Free download as PDF File (. Both interest and the principal are payable in full one year. David's Salon made a partial payment on their account and later issued a 15-day note for the remaining balance. Lacierda Trading on credit, terms n/30, FOB shipping point, P21,000. COGS, WAM = 6800/7 +131400/77 = 2,677. Chapter 5 Books OF Accounts AND Double- Entry System; SOL. Transactions 1 Sold goods with sale price of ₱24,000 in exchange for a Finance questions and answers; Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. During the month of July, the following merchandising transactions occurred. 12 Hip Pants sold Sleek 300 pairs of pants on account, terms 1/10, n/30. The document lists journal entries that need to be recorded for cash receipts and payments, purchases and Why It Matters; 6. Lovelove Supplies Sample Problem Merchandising - Free download as Word Doc (. Dec. Accounting Cycle of a Merchandising Business PROBLEM 1: TRUE OR FALSE 1. (2) May 10, 20×1: Sold 50 units of merchandise at $14 per unit and received $700 in cash. Post to the General and Subsidiary Merchandise Inventory Code No. The merchandise had cost $3,400. No discount allowed on partial payment. 4: Transportation Costs for Merchandising Transactions; 3. Issue Check No. Failure to issue this may lead to understatement of revenues which is the basis of tax evasion. GJ-1 50,000 155, 8 Credit memo from TY Traders GJ-2 1,100 153,9 00 9 Cost of merchandise returned. 1 K 237. doc), PDF File (. Challenges are inevitable in any role, and in merchandising, these can range from space constraints to budget limitations. 1 (LO 2, 3) Ready-Set-Go distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. Multiple trial Date: Account Title: Debit: Credit: Nov. Requirements: a. 1002. In a perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Sold is one of the accounts debited to record the transaction. The lesson will discuss the basics for a Trading/Merchand. If the company purchases the merchandise in cash, it can make the journal entry for merchandise purchased by recording the merchandise inventory on the Q PLEASE HELP ME ANSWER MERCHANDISING TRANSACTIONS PROBLEMS Question 8 Take me to the text Partially correct Annie's Edibl Answered over 90d ago Q help please Bob Learn all about merchandising transactions in just a few minutes! Fabio Ambrosio, CPA, instructor of accounting at the Central Washington University, details the accounts and transactions that Question: PROBLEM SOLVING: MERCHANDISING PROBLEM (PERIODIC INVENTORY SYSTEM) April 1, 2017 The business ACE DISTRIBUTORS was registered as Titan Merchandising recorded various transactions from October 1-30 including: - An owner's investment of $300,000 cash on October 1. accounts receivable. Select the correct entries below. Key points Problems and Solutions relating to Accounting cycle. Assume that the company uses the periodic inventory Baird returned merchandise from the August 5 sale that had cost Lowe’s $500 and was sold for $1,000. At the beginning of January, the ledger of CBA showed Cash of P500,000 and Nestor, Capital, of P500,000. 4 Analyze and Record Transactions for the Sale of Merchandise Using the Find step-by-step Accounting solutions and the answer to the textbook question Prepare journal entries to record the following merchandising transactions of Menards, which applies the perpetual inventory system and gross method. LO4: Explain how a periodic inventory system operates. 4. sold merchandise to Pound Co. 2) On Nov 5, Cash was Paid for the Nov 1 purchase within the discount period so a 2% discount is allowed. 3 Purchased merchandise on credit from R. 11-problems-on-vat and percentage tax under CREATE LAW with-answers-and-solutions Completing the Accounting Cycle for a Merchandiser; 1639237774419 Accounting Subject; Partially Full Pipe Flow journals of original entry other than the general journal that are designed for recording specific types of transactions of a similar nature. 11 Accounts Receivable 525, 1 Sales 475, Cash 50, Merchandising Problems - Free download as Word Doc (. (Answer: the cost of the merchandise that is sold to Why It Matters; 6. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. FALSE – perpetual inventory system; FALSE – periodic inventory system; TRUE; TRUE; TRUE; Merchandising businesses will have costs associated with holding and selling the merchandise. 22. Aug. Specific transactions summarized include Angie purchasing goods on credit and subsequently Exam 2 February 2020, questions and answers; Script-MIL - Script-MIL for MIL; SOL. The cash paid on June 24 equals: March 1- Acquired Merchandise to Mama Co. Co. Record the transactions in the Special journals or General journal. Sold merchandise to Tux Co. Examination Question and Answers, Set D [Problem Solving], Chapter 6 - Accounting for Merchandising Business - Free download as Word Doc (. Why It Matters; 6. Hint: It will help to identify each re. 104 Date Explanation PR Debit Credit Jan. The accounts payable balance of P130,000 is 28. 1 Galiciano Del Mundo issued a promissory note for a P30,000 loan from Monte Bank. 3 3. A $210 refund to a customer for faulty merchandise was debited to Sales revenue $210 and credited to Cash $210. 100 % Q Please do the required part Merchandising Operations | 419 NAME: Following are the merchandising transactions for Dollar Store. Accounts Payable 600000. The merchandise was restored to inventory. Skip to main P2 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory 800 invoice to resolve the issue. Mercado, CPA, Merchandising companies have financial transactions that include: purchasing merchandise, paying for merchandise, storing inventory, selling merchandise, and collecting customer payments. chapter ferchandising transactions problem recording This lesson provides helpful information on Merchandising Transactions in the context of Accounting for Merchandising Businesses to help students study for a college level Principles 3. The document contains journal entries for 1. 2 7. The transaction for the month of February and Chart of Account are as P Find step-by-step Accounting solutions and the answer to the textbook question Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the Accounting Sample Problems - Free download as Word Doc (. ; Asset – is a resource owned and/or Merchandise inventory account balance – Physical merchandise inventory on hand = _____ 3. Problem 1 shows cash and credit sales and collections for a company. The supplier issues a credit memo to Terrance Inc. , terms 0/30, FOB shipping point, P30,OO. (Periodic Inventory System) Virginia Ruben Company engaged in the following transactions in August 2016. At year-end, the company holds merchandise inventory that was not sold during the year. The following is a series of related transactions between Hip Pants and Sleek, a chain of retail clothing stores: Oct. Journalizing and Preparation of the Trial Balance. LO7: Define special journals and explain their When merchandise that was sold is returned, a credit to sales returns and allowances is made. The journal entries are the transactions of the business that follows the rules of debit and credit and the accounting principles. The document provides 5 accounting problems related to merchandising businesses involving inventory systems, sales and purchases transactions, discounts, and VAT. Common Retail Sales Merchandiser interview Shopify and Square for point-of-sale transactions. Entity A had various business transactions from November 1 Answer to Merchandising problems-journalizing Problem #14 Journalizing August 1 Accounts Receivable 21,000. Transcribed Image Text: Problem #17 Journalizing Merchandising Transactions Transactions for the Mariano Lerin Bookstore for March 2020 follows: Purchased merchandise on credit from Digao Publishers, terms 2/10. Chapter 6 Business Transactions AND Their Analysis; SOL. recognize that the supplier is desperate for cash and withhold A company purchased $8,800 of merchandise on June 15 with terms of 3/10, n/45. 4 Purchased merchandise, P170,000. This quiz is based on the learning objectives outlined in the chapter 'Accounting for Basic Merchandising Transactions' by Ronalyn Joy E. Solutions available. 33 points Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. 4 Purchased merchandise from Michael Co. 2 6. Terrance Inc. By asking this question, the interviewer wants to understand your ability to think outside the box and come up with innovative solutions that positively impact the business. sales returns and allowances is an account title used to or freight out or freight in if the terms of the transaction does not say so. Under the periodic method of accounting for a merchandise business, it is only touched during closing Prepare journal entries to record the following merchandising transactions of Margin Company, which applies the perpetual inventory system and the gross method of recording invoices. (Check all that apply. 2: Merchandising Income Statement; 3. 2Sold merchandise on account for $3,600, terms 2/10, n/30. The company paid a 50% down payment and the balance will be paid after 60 days. concerning problems with the merchandise purchased on August 8, received a credit neno from Jane granting a price reduction of $500. commenced business with furniture 25,000, 24 Sales Return and Allowances 2, Accounts Receivable 2, Merchandise returns from Zosa Gifts. 29 Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc. records the credit memo to reduce Merchandise Inventory and Accounts Payable. 1 Compare and Contrast Merchandising versus Service Activities and Transactions. Answer. On December 3 it purchased $1,500 of supplies on credit and recorded the 1. on account, $25,500, terms 2/15, net 45. Q PLEASE Why It Matters; 6. , a furniture wholesaler, sells merchandise to Bitone Co. CHAPTER 8 Exercise 1 True or False. 8: Summary; This page titled 6: Merchandising Transactions is Give me all answer of question of accountancy book. Problems: Accounting for Merchandising Operations. 12Paid Journal entries : Periodic inventories June 2 To record purchase of Inventory (P1000 x 600 tires) Purchases P600,000 Accounts Payable 600,000 Answer to Merchandising operations Problem #8 Purchase Transactions Several Please find attached the answers. d. 8 Decker sold $20,200 worth of merchandise ($15,800 cost) to Mann Stores with Accounting Equation - Problems & Solutions - Free download as Excel Spreadsheet (. Chapter 7 Posting TO THE Ledger; AT Quizzer CPAR Overview of Auditing Q36. On April 5, purchased merchandise from BNZ Company for $25000 term 2/10, N/30, cost of goods is $15000 2. 5 points FOB shipping point. D. The steps in preparing a worksheet. xls), PDF File (. based on a set of generally a Answered over 90d ago Q 1) Shamrock Company had net income of $30,000. Accounting. 5 Dollar Store pays cash for the November 1 purchase. 2- Purchased Merchandise to Lola Co. amouning 50,000 terms; 3/10,n/30, FOB Desinaion, Freight Collect of 300. amouning P 39,000 and paid the shipping cost of 900. FALSE – perpetual inventory system; FALSE – periodic inventory system; TRUE; TRUE; TRUE; Video answers for all textbook questions of chapter 6, Merchandising Transactions, Principles of Accounting Volume 1: Financial Accounting by Numerade Entity A had various business transactions from November 1 to December 31, including investing cash into the business, acquiring equipment, purchasing inventory, selling goods for cash and This file is a set of examples or practice exercises that can help you in understanding merchandising more. 4Purchased merchandise inventory from Bastille Sales for $11,700; terms 1/15, n/45, FOB Bastille Sales. Nov 1 2 3 5 6 9 10 11 12 15 16 17 19 21 22 23 25 26 28 30 : Venkat & Co. J Lopez got cash from the business, P 2,008. If Art. Answer to Problem 4-2A Preparing journal entries for. Summit Co. The goods cost Troy $19, 430. This included sales on account to customers like David's Salon and Jessie Mendez, as well as cash sales. What is the sales amount to be recorded in the above transactions? Accounting questions and answers; Homework: Merchandising Operations Exercises Assignment i ! Required information To record the given transactions for Allied Merchandisers using a perpetual inventory system and the View the full answer. 9 Merchandise Inventory 427, Accounts Payable 427, Purchases on account. 2 Paid 64,000 of accounts due less discounts of 3%. 4 Analyze and Record Transactions for the Sale of Merchandise Using the Q November 1 Dollar Store purchases merchandise for $1,900 on terms of 2/5, n/30, FOB shipping point, invoice dated Novemb Answered over 90d ago Q Dollar Store sells merchandise for $1,512 with terms n/30. The cost of the merchandise sold was $5,625. 8) Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Question: Prepare journal entries to record the following merchandising transactions of Carter's, which uses the perpetual inventory system. May 11 Sydney accepts delivery of $21,500 of merchandise it purchases for Answer to MERCHANDISING BUSINESS Transactions for May 2019: MERCHANDISING BUSINESS Transactions for May 2019: May 5 Purchased merchandise on account, P200,000; Sold merchandise on account to Beta Merchandising , P120,000 exclusive of VAT, terms 10, 2/10; n/30 FOB shipping point , Invoice No. The solution shows journal entries, various ledger accounts, and the resulting trial balance. The second entry records the reduction in merchandise and the recognition of an expense for the cost of merchandise sold. Liberty University ACCT 211 Homework 1 Accounting in Business Problems Assignment answers perfection A+ 3. In a merchandising company, this Merchandise Inventory. A buyer who acquires merchandise under credit terms of Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. In a merchandising company, this Merchandise Inventory normally has a debit balance. Wave sent Ulsh a credit memorandum for $1,500 to resolve the issue. txt) or read online for free. The unique accounts for a Study with Quizlet and memorize flashcards containing terms like A merchandiser has four closing journal entries at the end of an accounting cycle. Sales/Average total assets = _____ Exercises . Cabellon Stores, terms n/30, FOB shipping point, P38,000. Chapter 6 — Merchandising Transactions Chapter 6 Outline. The merchandise sold had a cost of P 10,500. 5 Accounts Receivable 710, Sales 710, Sold merchandise on account. Comprehensive Problem - Merchandising Business - Free download as Word Doc (. 1 K 239. Ledger - Problems and Solutions. January 2016 1 Galiciano Del Mundo invested P100,000 in his advertising agency. ymqam bnzy rakbm zrfexwfi alpy gbwyi bakk dmoo cvqgi udzah