1.

C-Mart Sales uses the perpetual inventory system and had the following transactions during August 2020.

Aug 1	Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500.
3	Purchased merchandise for cash, $2,720.
4	Purchased merchandise on credit for $2,600, terms 1/20, n/30.
5	Issued a credit memorandum for $3,000 to a customer who returned merchandise purchased on July 20. The returned items had a cost of $2,010.
10	Received payment for merchandise sold on August 1.
15	Received a credit memorandum from the seller for the return of faulty merchandise purchased on August 4 for $600.
18	Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point)
23	Paid for the merchandise purchased August 4 less the portion that was returned.
24	Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900.
31	Received payment for merchandise sold on August 24.

Required:
Prepare the general journal entries to record these transactions.

2.

A company's inventory records indicate the following data for the month of April 2020:

April 1	beginning	350 clocks at $18 each
April 5	purchase	290 clocks at $20 each
April 9	sale	500 clocks at $55 each
April 14	purchase	250 clocks at $22 each
April 20	sale	200 clocks at $55 each
April 30	purchase	204 clocks at $25 each

Using the FIFO or LIFO method and the perpetual inventory system, what would be the cost of goods sold and the ending inventory?

3.

Calculate: National Storage Company had sales of $1,000,000, sales discounts of $2,500, sales returns and allowances of $15,000, and cost of goods sold of $525,000. Calculate the National's gross profit.

4.	Essay: Describe the difference(s) between the periodic and the perpetual inventory accounting systems.

Answer rating: 100% (QA)

Prepare the general journal entries to record these ... View the full answer