1) Radical Radials Company has the following inventory data:
July 1 Beginning inventory 20 units at $19 $ 380
7 Purchases 70 units at $20 1,400
22 Purchases 10 units at $22 220
$2,000
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is
620, 704, 608, 640?
2) under the allowance method, Bad Debt Expense is
recorded
a) when an individual account is written off.
b) when the loss amount is known.
c) at the end of a fiscal year.
d) several times during the accounting period.
3)
On January 10, Bin Company purchased $10,000 of merchandise from Jin Company, terms 2/10, n/30. (The merchandise purchased by Bin on July 10 cost Jin $6,000.) Bin pays the freight cost of $500 on January 11. Goods totaling $1,000 are returned to Jin for credit on January 12. (The goods returned cost Jin $600.) On January 19, Bin pays Jin in full, less the purchase discount. Both companies use a perpetual inventory system.
Prepare the journal entries for the purchase return transaction (on January 12) on the book of Bin Company
Group of answer choices
Dr) Accounts payable 1,000
Cr) Cash 1,000
Dr) Accounts payable 600
Cr) Inventory 600
Dr) Inventory 1,000
Cr) Accounts payable 1,000
Dr) Accounts payable 1,000
Cr) Inventory 1,000
Solution 1:- The amount allocated on inventory (LIFO) =20 units × $19 + (32-20) units ×$20
=$620 (Answer)
Solution 2:-
Under the allowance method, Bad Debt Expense is recorded at the end of a fiscal year on based of ending balance of accounts receivable
(Option ,C is Correct)
Solution 3:-
Follow golden rule ",Debit what comes in ,Credit what goes out for real account (Inventory) " And " Debit the receiver ,Credit the Giver" for personal account (account payable).
Journal.entry will be in book of Bin company
Dr) Accounts payable 1000
Cr) Inventory 1000
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