Prepare the Inventory records using the Weighted Average method. DATE PARTICULARS PRICE PER UNIT 1.01.2021 Balance in
Question:
Prepare the Inventory records using the Weighted Average method.
DATE | PARTICULARS | PRICE PER UNIT |
1.01.2021 | Balance in inventory was 400 bags of rice | OMR 2.100 per bag |
2.01.2021 | Purchased 500 bags of rice | OMR 2.250 per bag |
4.01.2021 | Sold 560 bags of rice | |
6.01.2021 | Purchased 220 bags of rice | OMR 2.150 per bag |
8.01.2021 | Purchased 100 bags of rice | OMR 2.050 per bag |
10.01.2021 | Sold 420 bags of rice | |
15.01.2021 | Purchased 250 bags of rice | OMR 2.400 per bag |
18.01.2021 | Sold 400 bags of rice |
Mr. Ahmed sold to Mr. Ayman OMR 60,000 worth of goods on the 12th of March 2012 by accepting a 130 days,8% interest bearing note. Both Mr. Ahmed & Mr. Ayman need your help in understanding how and in what way the notes receivable and the payables should be treated.
Provide them with the required help by showing how the transactions would be treated in the following situations:
When the notes are accepted.
On the maturity date, the note is honoured.
Suppose Mr. Ahmed prepared final accounts on the 15th of May 2012.
Following the above situation, the bill is met on maturity.
The note was dishonoured on the maturity date by Mr. Ayman.
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura