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?
Read DetailsKlump Co.Klump Co. uses a perpetual inventory system and had…
Klump Co.Klump Co. uses a perpetual inventory system and had the following inventory transactions for the month of June. June 1 On hand, 50 units at $18.00 each $ 900.00 4 Purchased 115 units at $18.20 each $2,093.00 5 Sold 100 units 10 Purchased 75 units at $18.25 each $1,368.75 24 Sold 40 units 30 On hand, 100 units Refer to the information provided for Klump Co. If the company uses the FIFO inventory costing method, cost of goods sold for the month of June is:
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