Facts-by-FAX sells facsimile machines, copiers, and other types of office equipment. On May 10, PROBLEM 5.2 the company purchased...

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Facts-by-FAX sells facsimile machines, copiers, and other types of office equipment. On May 10, PROBLEM 5.2 the company purchased for the first time a new plain-paper fax machine manufactured by Mitsui Corporation. Transactions relating to this product during May and June were as follows: May 10 May 23 May 24 June 9 June 19 June 22 Purchased five P-500 facsimile machines on account from Mitsui Corporation, at a cost of $560 each. Payment due in 30 days. Sold four P-500 facsimile machines on account to Foster & Cole, stockbrokers; sales price, $900 per machine. Payment due in 30 days. Purchased an additional seven P-500 facsimile machines on account from Mitsui. Cost, $560 per machine; payment due in 30 days. Paid $2,800 cash to Mitsui Corporation for the facsimile machines purchased on May 10. Sold two P-500 facsimile machines to Tri-State Realty for cash. Sales price, $950 per machine. Collected $3,600 from Foster & Cole in full settlement of the credit sale on May 23. Instructions a. Prepare journal entries to record these transactions in the accounting records of Facts-by-FAX. (The company uses a perpetual inventory system.) b. Post the appropriate information from these journal entries to an inventory subsidiary ledger account like the one illustrated on page 198.) Perpetual Inventory System and an Inventory Subsidiary Ledger LO 1, 2, 3 c. How many Mitsui P-500 facsimile machines were in inventory on May 31? From what ac- counting record did you obtain the answer to this question? d. Describe the types of information contained in any inventory subsidiary ledger account and explain how this information may be useful to various company personnel in conducting daily business operations.

Answer rating: 100% (QA)

d From inventory sub View the full answer