Question

james Company began the month of October with inventory of $21,000. The following inventory transactions occurred...

james Company began the month of October with inventory of $21,000. The following inventory transactions occurred during the month:

The company purchased merchandise on account for $31,000 on October 12, 2018. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $560 were paid in cash.

On October 31, James paid for the merchandise purchased on October 12.

During October, merchandise costing $18,900 was sold on account for $29,200.

It was determined that inventory on hand at the end of October cost $33,350.


Required:
1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold.
2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following information applies to the questions displayed below.] James Company began the month of October...
The following information applies to the questions displayed below.] James Company began the month of October with inventory of $20,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $29,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $550 were paid in cash. On October 31, James paid for the merchandise purchased on...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $43,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $640 were paid in cash. On October 31, James paid for the merchandise...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $46,000 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $660 were paid in cash. On October 31, James paid for the merchandise...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $46,000 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $660 were paid in cash. On October 31, James paid for the merchandise...
Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] Skip to question [The following...
Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3] Skip to question [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $23,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $34,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $580...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 75,000 shares of common stock in exchange for $375,000 cash. Purchased office equipment at a cost of $68,750. $27,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $150,000. The company uses the perpetual inventory system. Credit sales for the month totaled $255,000....
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company...
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 55,000 shares of common stock in exchange for $275,000 cash. Purchased office equipment at a cost of $53,750. $21,500 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $110,000. The company uses the perpetual inventory system. Credit sales for the month totaled $187,000....
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and John’s account was credited by the supplier. Merchandise costing $3,250 was sold for $6,100 in cash. Required: Prepare the necessary journal entries to record these transactions.
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John’s purchased merchandise on account for $6,100. Freight charges of $850 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,150 and John’s account was credited by the supplier. Merchandise costing $3,350 was sold for $6,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: John’s purchased merchandise on account for $6,500. Freight charges of $1,050 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,350 and John’s account was credited by the supplier. Merchandise costing $3,550 was sold for $6,700 in cash. Required: Prepare the necessary journal entries to record these transactions. 1.) Record...