Stooge Wholesale has the following transactions during the month of January 2021:

Jan. 1	Purchased inventory from Curly Inc. for $5,000, FOB destination, terms 2/10 n/30.
Jan. 2	The appropriate company paid $100 freight on the January 1 purchase.
Jan. 6	Returned $1,000 worth of goods to Curly as they were the wrong colour.
Jan. 7	Sold half of the remaining inventory purchased from Curly to Larry Inc. for $6,000, FOB destination, terms 2/20 n/30.
Jan. 8	The appropriate company paid $40 freight on the January 7 sale.
Jan. 10	Paid Curly the entire amount owed to him.
Jan. 12	Purchased inventory worth $5,000 from Moe Inc., FOB shipping point, terms 3/15 n/45.
Jan. 13	The appropriate company paid $75 freight on the January 12 purchase.
Jan. 17	Sold half of the inventory purchased from Moe to Shemp Ltd. for $5,000, FOB shipping point, terms 1/10 n/20.
Jan. 18	The appropriate company paid $80 freight on the January 17 sale.
Jan. 22	Shemp returned $500 worth of the goods bought on January 17 as you shipped the wrong size.
Jan. 25	Shemp paid their outstanding balance.
Jan. 30	Larry paid their outstanding balance.
Jan. 31	Paid Moe the entire amount owed to him.

Record all of the transactions into the expanded accounting equation, with account names, and then answer the following questions.

Question 1 (1 point)

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How would Stooge Wholesale record the January 1 transaction?

Question 1 options:

a)	Increase both Accounts Payable and Purchases

b)	Increase both Purchases and Inventory

c)	Increase both Accounts Payable and Inventory

d)	Increase both Purchases and Inventory Expense

e)	Increase both Accounts Payable and Inventory Expense

Question 2 (1 point)

How would Stooge Wholesale record the January 2 transaction?

Question 2 options:

a)	Increase both Inventory and Accounts Payable

b)	Increase both Freight Expense and Accounts Payable

c)

No entry

d)	Increase both Inventory and Freight Expense

e)	Increase Freight Expense and decrease Cash

Question 3 (1 point)

How would Stooge Wholesale record the January 6 transaction?

Question 3 options:

a)	Decrease Inventory and increase Purchase Returns

b)	Decrease both Purchases and Inventory Expense

c)	Decrease Accounts Payable and increase Purchase Returns

d)	Decrease both Accounts Payable and Inventory Expense

e)	Decrease both Accounts Payable and Inventory

Question 4 (1 point)

How would Stooge Wholesale record the January 7 transaction?

Question 4 options:

a)	Increase Sales and Accounts Receivable $2,000 each, and increase Cost of Goods Sold and decrease Inventory $6,000 each

b)	Increase Cost of Goods Sold and decrease Inventory $2,000 each

c)	Increase Sales and Accounts Receivable $6,000 each, and increase Cost of Goods Sold and decrease Inventory $6,000 each

d)	Increase Sales and Accounts Receivable $6,000 each, and increase Cost of Goods Sold and decrease Inventory $2,000 each

e)	Increase Sales and Accounts Receivable $6,000 each

Question 5 (1 point)

How would Stooge Wholesale record the January 8 transaction?

Question 5 options:

a)	Decrease both Cash and Inventory

b)

No entry

c)	Increase both Accounts Payable and Freight Expense

d)	Increase both Accounts Payable and Cost of Goods Sold

e)	Decrease Cash and increase Freight Expense

Answer rating: 100% (QA)

a Date Jan01 2 6 7 8 10 12 13 17 18 22 25 30 31 Total Q2 Q3 Q4 Q5 Accounts cash receivable Inventory ... View the full answer