Question

Tracer Advance Corporation (TAC) sells a tracking implant that veterinarians surgically insert into pets. TAC began...

Tracer Advance Corporation (TAC) sells a tracking implant that veterinarians surgically insert into pets. TAC began January with an inventory of 400 tags purchased from its supplier in November last year at a cost of $24 per tag, plus 200 tags purchased in December last year at a cost of $30 per tag. TAC uses a perpetual inventory system to account for the following transactions.

Jan. 3 TAC gave 500 tags to a courier company (UPS) to deliver to veterinarian customers. The sales price was $60 per tag, and the sales terms were n/30, FOB shipping point.
Jan. 4 UPS confirmed that all 500 tags were delivered today to customers.
Jan. 9 TAC ordered 700 tags from its supplier. The supplier was out of stock but promised to send them to TAC as soon as possible. TAC agreed to a cost of $43 per tag, n/30.
Jan. 19 The 700 tags ordered on January 9 were shipped to and received by TAC today. TAC complained about the delay between order and shipment date, so the supplier reduced the amount TAC owed by granting an allowance of $1 per tag ($700 total).
Jan. 23 TAC gave 750 tags to UPS, which were delivered “same day” to veterinarian customers at a price of $60 per tag, n/30, FOB shipping point.
Jan. 28 TAC received cash payment from customers for 400 of the tags delivered January 4.
Jan. 31 TAC counted its inventory and determined 40 tags were on hand. TAC made a “book-to-physical adjustment” to account for the missing 10 tags.

Assume Tracer Advance Corporation (TAC) uses weighted average cost in its perpetual inventory system. Prepare the journal entry for each transaction.

Journal Entry Worksheet

1 - Record the sale of tags to veterinarian customers

2 - Record the cost of tags sold to veternarian customers.

3- Record the tags delivered to customers.

4-Record the order for tags made by TAC from its supplier.

5-Record the purchase of tags after deducting the allowance given by supplier for delay between order and shipment.

6- Record the sale of tags to veterinarian customers.

7-Record the cost of tags sold to veternarian customers.

8-Record the cash collected from customers.

9-Record the loss of inventory at its cost.

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