AMIABLE COMPANY

PROVIDED INVENTORY DA
Items counted in the bodega
Items included in the count spec
Items in receiving department, r
Items ordered and in the receivi
Items ordered, invoice received
Items shipped today,invoice ma
Items shipped today,invoice ma
Items currently being use in win
Items on counter for sale
Items in receiving department, r
Items icluded in count, damage
Items in the shipping departmen

Total
INCLUDED
4,000,000.00
100,000.00
50,000.00
400,000.00

150,000.00
 200,000.00
800,000.00

250,000.00

5,950,000.00
EXCLUDED

300,000.00
250,000.00
180,000.00
50,000.00

780,000.00
Natal Company

Provided information:
Materials
Advance for materials ordered
Goods in process
Unexpired insuranced on invent
Advertising catalogs and shippin
Finished goods in factory
Fineshed goods in company-ow
Fineshed goods in hands of cons
Fineshed goods in transit to cost
Fineshed goods out on approval
Unsalable fineshed goods, at co
office supplies
Materials in transit shipped FOB
Goods held on consignment, at s

Total
Included
1,400,000.00

650,000.00

150,000.00
2,000,000.00
350,000.00
 240,000.00
250,000.00
100,000.00

40,000.00
360,000.00
150,000.00

5,690,000.00
Excluded

200,000.00

60,000.00
 50,000.00

310,000.00
Luminous Company

Provided information at curre

Finished goods in storeroom, at
Fineshed goods in transit, includ
Fineshed goods held by salesma
Goods in process, at cost of mat
Materials
Materials in transit, FOB destina
Defective materials returned to s
Shipping supplies
Gasoline and oil for testing finis
Machine lubricants
Total
Included
2,000,000.00

100,000.00
720,000.00
1,000,000.00
50,000.00
 110,000.00
60,000.00
4,040,000.00
Excluded

250,000.00

100,000.00
 20,000.00

370,000.00
Periodic System
1. Purchased
Acounts Payable
To record pu

2.Accounts Payable
Purchased returns an
To record ret
3.Accounts Payable
Cash
To record th

4. Cash / Account Receivable

Sales
To record

5. Sales / Returns and Allowanc

Cash/ Accoun
To record a
6. Cash
Accounts Receiv
To record received

7. Inventory - Ending
Cost of Goods Sold
Purchased
Inventory- Begin

Perpetual Inventory System

1. Inventory
Accounts Payable
To record th

2. Accounts Payable
Inventory
To

3.Accounts Payable
Cash
To record p
4. Accounts Receivable
Sales
Cost of good sold
Inventory
To record s

5. Sales returns and allowances

Account Receiva
Inventory
Cost of good sold
 To record

6. Cash
Accounts Receivable
To record recei
mpany

800,000.00

atcovers on account.

50,000.00

nventory to supplier.
 600,000.00

purchased inventory.

1,580,000.00

son of the entity.

40,000.00

d by the customer.
 1,360,000.00

sales / accounts receivable

 800,000.00

nventory on account

50,000.00

inventory.

600,000.00

entory on account.
 1,580,000.00

790,000.00

mpany on account.

40,000.00

20,000.00
 by the customer.

1,360,000.00

rom the inventory sold.

 800,000.00
nt.

50,000.00
er.
 600,000.00
y.

1,580,000.00

40,000.00
 1,360,000.00
eivable
 800,000.00
nt

50,000.00

600,000.00
.
 1,580,000.00

790,000.00
.

40,000.00

20,000.00
 1,360,000.00
sold.
List Price
First Trade Discount (20%x500

Second Trade Disciunt (10%x40

Third Trade Discount (10%x360

Invoice Price
Discount (2%x360,000)
Payment within discount period

Company B
List Price
Trade Discount 35%
(35%x5000000)
Invoice Price
Discount 2%
Payment within discount period
A
500,000.00
(100,000.00)
400,000.00

40,000.00
360,000.00

(36,000.00)
324,000.00
 (6,480.00)
317,520.00

500,000.00

(175,000.00)
325,000.00
(6,500.00)
318,500.00
 Aut
Gross Method

1. Purchases
Accounts payabale
To record

2. Freight In
Cash
To record payme
3. Account Payable
Purchase discount
Cash
To record paymen

4.Account Payable
Cash
To record paymen

5.Merchandise Inventory - End

 Income Summary

Net Method

1. Purchases
Accounts Payable
To record p

2. Freight In
Cash
To record paym
3.Account Payable
Purchase discount lo
Cash
To record paymen

4.Accounts Payable
Purchase discount lo
cash
To record paymen
5. Merchandise Inventory - End
Income Summary
n Company

4,750,000.00

chase on account.

250,000.00

f Freight charge in cash.

 3,717,000.00

the purchases on account

1,035,000.00

all purchased on accounts

950,000.00
 4,655,000.00

hase of on account

250,000.00

of freight charge in cash

 3,675,000.00
42,000.00

the purchases on account

1,012,340.00
20,660.00

all purchased on accounts

931,000.00
 4,750,000.00

250,000.00
n cash.
 32,340.00
3,684,660.00
account

1,035,000.00
ccounts
 950,000.00

4,655,000.00

250,000.00
n cash
 3,717,000.00

account

1,033,000.00
ccounts
931,000.00
 F
Grooss Method

1. Merchandise Inventory
Accounts Payable
To recor

2. Merchandise Inventory
Cash
To record paym
3. Accounts Payable
Payment Discount
Cash
To record payme

4. Accounts Payable
Cash
To record payme

5. Cash
 Sales
To re

Cost of Good Sold

Merchandise Invento
To record t
Merchandise - Ending
Incom Summary
To reco
Net Method

1. Merchandise Inventory
Accounts Payable
To recor

2.Merchandise Inventory
Cash
To record paym

3.Accounts Payable
 Cash
To record payme

4.Accounts Payable
Paid Discount Loss
Cash
To record payme

5. Cash
Sales
To re
Cost of Good Sold
Merchandise Invento
To record t

Merchandise Inventory- Ending

Income Summary
To reco
Company

1,000,000.00

chase on account.

50,000.00

of freight charge in cash.

 800,000.00

the purchases on account

200,000.00

the purchases on account

1,200,000.00
 sales on cash.

700,000.00

ales of the company.

300,000.00

nding inventory.
 980,000.00

chase on account.

50,000.00

of freight charge in cash.

784,000.00
the purchases on account

196,000.00
4,000.00

the purchases on account

1,200,000.00

sales on cash.
 686,000.00

ales of the company.

294,000.00

nding inventory.
 1,000,000.00

50,000.00
cash.
 16,000.00
784,000.00
ccount

200,000.00
ccount
1,200,000.00

700,000.00

300,000.00
 980,000.00

50,000.00
cash.
 784,000.00
ccount

200,000.00
ccount

1,200,000.00
686,000.00

294,000.00
 My

1. Merchandise Inventory
Accounts Payable
To record

2. Merchandise Inventory
Accounts Payable
To recor
3. Merchandise Inventory
Accounts Payable
To record

4. Accounts Payable
Purchase Return
To reco

5. Income Summary
Merchandise Inventory
To record a
ad Company

50,000.00

urchase on account.

75,000.00

urchase on account
 30,000.00

urchase on account.

90,000.00

return of purchase

140,000.00

ustment on inventory.
50,000.00

75,000.00
 30,000.00

90,000.00

140,000.00
 H

31-Dec-20
Inventory
Goods in Transit for Shipping
mpany
Credit

6,000,000.00
300,000.00
6,300,000.00
 Debit

D
 Emp

31-Dec-20
Inventory
Merchandise , FOB Shipping Po
Good in the Shipping Area
Total
mpany

Debit

2,500,000.00
100,000.00
400,000.00
3,000,000.00
 Credit

D
Inventory shipped on consignme
Freight Paid by Dignity Compan
600000
50000
650000 B
 Kindness C

List Price
First Trade Discount (900000x2

First Trade Discount (720000x1

Freight Charge
y

900,000.00
(180,000.00)
720,000.00

72,000.00
648,000.00
50,000.00
698,000.00
C
 Compassion

List Price
First Trade Discount (1000000x

Second Trade Discount (800000

Freight Charge
ny

1,000,000.00
(200,000.00)
800,000.00
80,000.00
720,000.00
50,000.00
770,000.00
D
 Kew

31-Dec-20
Account Payable
Good Shipped Lost in Transit
Good Purchase Return
Company

Debit

70,000.00
 Credit

2,200,000.00
40,000.00

2,170,000.00
A
 Black C

31-Dec-20
Accounts Payable
Check with Over Draft
Decemeber 28 Net Purchase
Total
ompany
4,500,000.00
2,000,000.00
735,000.00
7,235,000.00
C
 J

December 31,2020
Inventory
Merchandise, FOB Destination
Merchandise Purchase, FOB Sh
Total
any

4,410,000.00
380,000.00
510,000.00
5,300,000.00
A
 Aud

December 31,2020
Goods Sold, FOB Destination
Goods Purchase, FOB Shipping
Total
mpany

2,000,000.00
200,000.00
300,000.00
2,500,000.00
A
December 31,2020
Inventory-Ending
Special Machine Shipped on Jan
Goods in process held by outsid
Total
y

5,000,000.00
250,000.00
300,000.00
5,550,000.00
B
 S

December 31,2020
Inventory-Ending
Goods Purchase, FOB shipping
Goods Sold , FOB Shipping Poi
Good Sold , FOB Shipping dest
Goods Purchase, FAS in Transit
Good Sold , FOB Destination
Total
mpany

DEBIT

7,600,000.00
250,000.00

260,000.00
350,000.00
840,000.00
8,450,000.00
 CREDIT

850,000.00

D
White Company
Answer

December 31,2020
Sales, Net
Sales Returns & Allowances
Goods billed on Dec. 30
Goods shipped on Dec.31
Total sales
 Credit

5,000,000.00
50,000.00
200,000.00
300,000.00
5,550,000.00
B
Purple Company

Sales
Sales Return 30 days

Sales Exchange to merchand

(4,000,000x15%)

Total
4,000,000.00
(280,000.00)
3,720,000.00

(600,000.00)
3,120,000.00
C
Yellow Company

Gross Sale
Discount within 30 days
(750000x2%)
Net Sale of December 31,2020
750,000.00

(15,000.00)
735,000.00 B
 Indomitable

Sales (100,000X30%)
Payment Oct. 1
(3,000,000x50%)

Payment first delivery Dec.

(3,000,000x25%)
Retaining Payment for
Second Delivery
Sales
Retaining Payment
Sales Revenue 2020
table Company

3,000,000.00

(1,500,000.00)
1,500,000.00

(750,000.00)

750,000.00
3,000,000.00
(750,000.00)
2,250,000.00
C
Fancy Company

1. D
2.D
3.C
Quarry Company

1.A
2.A
3.A
Multiple Choice
1. B 6.B
2.A 7.A
3.C 8.A
4.A 9.B
5.D 10. A
Multiple Choice

1. A
2. D
3.A
4.C