On October 1, Jansen Corporation purchased $10,000 of mercha…
On October 1, Jansen Corporation purchased $10,000 of merchandise on account, credit terms 2/10, n/30. Jansen also paid $500 in transportation costs on October 1. On October 3, Jansen returned $2,000 of the merchandise which was defective. On October 10, Jansen paid the balance due . The company uses a perpetual inventory system. Refer to Jansen. The journal entry to record the purchase of the merchandise on October 1 would include:
Read DetailsOn October 1, Jansen Corporation purchased $10,000 of mercha…
On October 1, Jansen Corporation purchased $10,000 of merchandise on account, credit terms 2/10, n/30. Jansen also paid $500 in transportation costs on October 1. On October 3, Jansen returned $2,000 of the merchandise which was defective. On October 10, Jansen paid the balance due . The company uses a perpetual inventory system. Refer to Jansen. The journal entry to record the return of the merchandise on October 3 would include:
Read DetailsArlington Inc. purchased equipment on July 1, 2020 for $50,0…
Arlington Inc. purchased equipment on July 1, 2020 for $50,000. The equipment has an estimated useful life of five years and estimated residual value of $5,000. Assuming the company depreciates the equipment using the straight-line depreciation method, the depreciation expense recorded on December 31, 2020 would be:
Read DetailsA company bought machinery on January 1, 2019, for $200,000….
A company bought machinery on January 1, 2019, for $200,000. On January 2, 2021, the machinery had a book value of $100,000. It is estimated that the machine will generate future cash flows of $170,000 and its current fair value is $160,000. How much, if any, impairment loss should be recorded?
Read DetailsTedder Co.Tedder uses a periodic inventory system. At the en…
Tedder Co.Tedder uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January: Jan. 1 Beginning inventory: 10 units at $2 each $20 20 Purchased 90 units for $3 each $270 Cost of goods available for sale $290 Refer to the information provided for Tedder Co. If the company uses FIFO inventory costing, how much is cost of goods sold for January?
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