On December 1, the accounts receivable control account balance in the general ledger of the Picard...

 

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On December 1, the accounts receivable control account balance in the general ledger of the Picard Company was $9,500. The accounts receivable subsidiary ledger contained the following detailed customer balances: Selig $2,000, Jobs $2,400, Taylor $2,600, and Burton $2,500. The following information is available from the company's special joumals for the month of December. Cash Receipts Joumal: Cash received from Taylor $2,600, from Selig $1,300, from Munoz $1,700, and from Jobs $1,800. Sales Journal: Sales to Minoz $3,400, to Taylor $1,800, to Selig $3,100, and to Burton $1,900. Additionally, Taylor returned defective merchandise for credit for $680. Selig returned defective merchandise for $600 which he had purchased for cash. Instructions (a) Using T-accounts for Accounts Receivable Control and the detail customer accounts, post the activity for the month of December. The following information is available for Clancy Company: Beginning inventory 600 units at $4 First purchase 900 units at $6.50 Second purchase 500 units at $7.20 Assume that Clancy uses a periodic inventory system and that there are 760 units left at the end of the month. Instructions Compute the cost of ending inventory under the (a) FIFO method. (b) LIFO method. On December 1, the accounts receivable control account balance in the general ledger of the Picard Company was $9,500. The accounts receivable subsidiary ledger contained the following detailed customer balances: Selig $2,000, Jobs $2,400, Taylor $2,600, and Burton $2,500. The following information is available from the company's special joumals for the month of December. Cash Receipts Joumal: Cash received from Taylor $2,600, from Selig $1,300, from Munoz $1,700, and from Jobs $1,800. Sales Journal: Sales to Minoz $3,400, to Taylor $1,800, to Selig $3,100, and to Burton $1,900. Additionally, Taylor returned defective merchandise for credit for $680. Selig returned defective merchandise for $600 which he had purchased for cash. Instructions (a) Using T-accounts for Accounts Receivable Control and the detail customer accounts, post the activity for the month of December. The following information is available for Clancy Company: Beginning inventory 600 units at $4 First purchase 900 units at $6.50 Second purchase 500 units at $7.20 Assume that Clancy uses a periodic inventory system and that there are 760 units left at the end of the month. Instructions Compute the cost of ending inventory under the (a) FIFO method. (b) LIFO method.

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1 Control Account Accounts Receivable 9500 CR 7400 SJ 10200 G 680 Bal ... View the full answer