Question

fire damaged 6 flat screen lcd television and 14 dvd players held for sale by awesome electronic inc. since the damage was not covered by insurance, the itema will be repaired and aold in accordance witg the following data: data per unit lcd television dvd players normal selling price $1500 $400 purchase price $1200 $300

Answer 1

	$
Sale Revenue:
(6 flat screen lcd television * $1500 )	9,000
(14 dvd players * $400)	5,600
Total Sale Revenue	14,600
Less:
Purchase Price
(6 flat screen lcd television * $1200 )	7,200
(14 dvd players * $300)	4,200
Total Purchase Price	11,400
Recognized Income	3,200

Note:

1) There is no insurance of stock, so there is no amount receivable from insurance company.

2) There is no begining and ending inventory is given, so all purchases is the cost of goods sold

Journal Entries are as follows:

Date	Account Receivable	Debit($)	Credit($)
1)	Account Receivable	14,600
	Sale		14,600
	(Recorded the sale of inventory )
2)	Cost of Goods sold	11,400
	Inventory		11,400
	(Recorded the Cost of Goods sold )