Question: Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2009,

Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2009, there were 200 cartridges on hand at a cost of $60 each. During 2009, Printer Supply Company purchased 1,400 cartridges at $60 each, sold 800 cartridges at $95 each, and sold an additional 750 cartridges at $102 each after a midyear selling price increase. Printer returned 10 defective cartridges to the supplier. In addition, customers returned 15 cartridges that were purchased at $102 to printer for various reasons. Assume that Printer Supply Company uses a periodic inventory system.

Required:

1. Prepare journal entries to record the purchases and sales of inventory. Assume that all purchases and sales are on credit but no discounts were offered.

2. What is the cost of inventory, cost of goods sold, and gross profit for 2009?

3. If you have previously worked Exercise 6-38, compare your answers. What are the differences? Be sure to explain why the differences occurred.

Step by Step Solution

★★★★★

3.39 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Account and Explanation Debit Credit Purchases 1400 60 84000 Accounts payable 84000 Purchased inventory on account Accounts Receivable 152500 Sales ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

145-B-M-A-I (1401).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Prepare journal entries to record its following production activities. 1. Purchased $80,000 of raw materials on credit. 2. Used $34,000 of direct materials in production. 3. Used $41,000 of indirect...

A company uses a periodic inventory system on august 1, the company had 6 items of beginning inventory with a cost of $7 per unit on August 3, the company purchased 16 units at $14 per unit then, on...

Prepare journal entries to record the following. (a) Gomez Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage...

RECORDING PURCHASES AND SALES Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2009, there were...

Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of the year, there were 200 cartridges on hand at a...

Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2019, there were 225 cartridges on hand that cost...

Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2011, there were 225 cartridges on hand at a cost...

Use residues to find the Cauchy principal values of the improper integrals in Exercises (x1) cos x

The impact of virtual leadership is likely to grow in the future. As a potential follower in a virtual leadership situation, what issues would be of most concern to you? What would the issues be from...

A retiree is paid $ 1 2 0 0 per month by an annulty. If the income is invested in an account that earns 5 % interest compounded continuouly, what is the flure value of the income after tan years? (...

The Kejore Company has the following information available: Month Budgeted Sales May RM84,000 June 72,000 July 74,000 August 76,000 September 78,000 October 78,000 Budgeted Operating Expenses Per...

Explain the physiological factors that would cause the differences in muscle endurance in your right and left arms. Is there a relationship between the diameter of your arms to the muscle endurance...

You have the following information on a project's cash flows. The cost of capital is 10.1% Year Cash flows 0 -$114,000 1 23,000 2 23,000 3 33,000 4 32,000 5 54,000 The NPV of the project is $____....

Copper Corporation has the following sales budget for the last six months of 2016: July $200,000 October $180,000 August 160,000 November 200,000 September 220,000 December 188,000 Historically, the...

1. Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as...

Torn ACL Having at least one 15-minute warm-up session per week resulted in a drastic reduction in tears in the anterior cruciate ligament (ACL). In a study involving about 4500 adolescent girls...

Refer to Remingtons financial statements in Exercise 12-65 and the information below. Statement Item January 1, 2010 (In Thousands) Total assets ............... $3,485,233 Total stockholders equity...

Refer to Remingtons financial statements in Exercise 12-65 and the information below. At January 1, 2010, total stockholders equity was $2,083,122 and there was no preferred stock. Required: 1....

Refer to Remingtons financial statements in Exercise 12-65 and the information below. Required: 1. Perform Dupont analysis (in percentage terms, rounded to two decimal places) for 2010 and 2011. 2....

The SBT Corporation is considering making a major investment in a new product that will cost $500,000 upfront to develop and launch. The sales department claims that this new product is needed to...

Write the binomial probability and the normal probability for the shaded region of the graph. Find the value of each probability and compare the results. x AF(x) 0.24- n=16 0.2- p=o.5 0.16- 7 0.12-...

Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay...