ACCT 211 Week 3 Homework Help | Accounting Assignment Help | Liberty University
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- 08 Feb 2019
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ACCT 211 Week 3 Homework Help | Accounting Assignment Help | Liberty University
Connect Homework 3
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied
(seller) products.
|
May |
|
3 |
|
Allied
made its first and only purchase of inventory for the period on May 3 for
3,000 units at a price of $11 cash per unit (for a total cost of $33,000). |
|
|
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5 |
|
Allied
sold 1,500 of the units in inventory for $15 per unit (invoice total:
$22,500) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied
$16,500. |
|
|
|
7 |
|
Macy
returns 150 units because they did not fit the customer’s needs (invoice
amount: $2,250). Allied restores the units, which cost $1,650, to its
inventory. |
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|
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8 |
|
Macy
discovers that 150 units are scuffed but are still of use and, therefore,
keeps the units. Allied sends Macy a credit memorandum for $1,050 toward the
original invoice amount to compensate for the damage. |
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|
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15 |
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Allied
receives payment from Macy for the amount owed on the May 5 purchase; payment
is net of returns, allowances, and any cash discount. |
Prepare
the appropriate journal entries for Macy Co. to record each of the May
transactions. Macy is a retailer that uses the gross method and a perpetual
inventory system, and purchases these units for resale. (If no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
Question 2
Prepare journal entries to record
the following transactions for Allied assuming it uses a perpetual inventory
system and the gross method. (Allied estimates returns using an adjusting entry
at each year-end.)
Question 3
Sydney Retailing (buyer) and Troy
Wholesalers (seller) enter into the following transactions.
|
May |
|
11 |
|
Sydney accepts delivery of $26,000
of merchandise it purchases for resale from Troy: invoice dated May 11; terms
3/10, n/90; FOB shipping point. The goods cost Troy $17,420. Sydney pays $550
cash to Express Shipping for delivery charges on the merchandise. |
|
|
|
12 |
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Sydney returns $1,300 of the
$26,000 of goods to Troy, who receives them the same day and restores them to
its inventory. The returned goods had cost Troy $871. |
|
|
|
20 |
|
Sydney pays Troy for the amount
owed. Troy receives the cash immediately. |
(Both Sydney and Troy use a perpetual inventory system and the gross method.)
1. Prepare journal entries that Sydney Retailing (buyer) records for
these three transactions.
2. Prepare journal entries that Troy Wholesalers (seller) records for
these three transactions.
Question 4
Following are the merchandising transactions
for Dollar Store.
|
Nov. |
|
1 |
|
Dollar
Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping
point, invoice dated November 1. |
|
|
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5 |
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Dollar
Store pays cash for the November 1 purchase. |
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|
7 |
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Dollar
Store discovers and returns $200 of defective merchandise purchased on
November 1, and paid for on November 5, for a cash refund. |
|
|
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10 |
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Dollar
Store pays $75 cash for transportation costs for the November 1 purchase. |
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13 |
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Dollar
Store sells merchandise for $1,620 with terms n/30. The cost of the
merchandise is $810. |
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16 |
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Merchandise
is returned to the Dollar Store from the November 13 transaction. The
returned items are priced at $235 and cost $118; the items were not damaged
and were returned to inventory. |
Journalize the above merchandising transactions for the Dollar Store
assuming it uses a perpetual inventory system and the gross method.
Question 5
|
|
Case X |
Case Y |
Case Z |
||||||
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Cash |
|
$ |
2,400 |
|
$ |
230 |
|
$ |
1,300 |
|
Short-term investments |
|
|
0 |
|
|
0 |
|
|
600 |
|
Current receivables |
|
|
260 |
|
|
510 |
|
|
500 |
|
Inventory |
|
|
2,175 |
|
|
2,020 |
|
|
3,050 |
|
Prepaid expenses |
|
|
300 |
|
|
600 |
|
|
900 |
|
Total current assets |
|
$ |
5,135 |
|
$ |
3,360 |
|
$ |
6,350 |
|
Current liabilities |
|
$ |
2,220 |
|
$ |
1,320 |
|
$ |
3,550 |
|
|
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|
Compute the current ratio
and acid-test ratio for each of the following separate cases. |
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USA 
India