Please help with work shown 1.) Given the following information calculate the am
ID: 2369463 • Letter: P
Question
Please help with work shown
1.) Given the following information calculate the amount of cash finallly remitted by the customer on Feb 21
Feb 14- sale on credit, terms of 1/15, n/30-$12,000
Feb 19- Allowance granted due to some items being damaged-$600
Feb 21- payment in full received from customer___________
2.) Vaughn Company, which uses a periodic inventoy system, had a beginning inventory on May 1, of 300 units of product A at a cost of $6.25 per unit. During May the following purchases were made: May 6- 300 units at $7.20, May 14- 400 units at $9.10, May 21- 100 units at $11.50, May 28- 500 units at 11.80. The sales were May 4- 275 units, May 8- 300 units, May 22- 400 units, and May 24- 225 units. Now puchases combined for 1,300 and sales combined for 1,200. So what are the ending inventories for May 31 and May cost of goods under the FIFO rule.
Ending Inventory
Cost of Goods Sold
3.) If the beginning inventory is $60,000, cost of goods is purchased by 380,000 and the ending inventory is 50,000, then the cost of goods sold is ___________
4. J Marcus Webb Company found the following erroe were made in Janaury 2012. Correct the errors by reversing the incorrect entry and preparing the correct journal entry
A payment of Salaries and Wages Expense of $700 was debited to equipment and credited to cash for both for $700
A collection of $1,000 from a client on account was debited to cash $1000 and credited to Service Revenue for $100
The purchase of Equipment on account for $760 was debited to equipment $670 and credited to accounts payable for $670
Explanation / Answer
1. Amount rxcable 12000-600 = 11400
As Cut paid within 7 days (Feb 21 - Feb 14), he will get 1% Disc which is 1%*11400 = 114.
So Full Payment rxd from cust = 11400-114 = 11286
2. Under periodic inventoy system, reconcilation happens only at end of period. As we have purchases 1300 & Sales 1200, ENding Inv is Op Inv+Purch-Sales=300+1300-1200 = 400.
Under FIFO, Ending Inv = 400*$11.80 =$4720.00
COGS = 300*$6.25+300*$7.20+400*$9.10+100*$11.50+100*11.80
= $10,005.00
3. COGS = Begin Inv+Purchases-Enging Inv
ie COGS = 60000+380000-50000 = 390,000
4. mmddyy Salary & Wages Dr 700
Eqpt Cr 700
mmddyy Suspense acct Dr 900
Service Rev Cr 900
mmddyy Eqpt A/C Dr 90
Acct Payable Cr 90