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raketka [301]
3 years ago
12

Swifty Industries purchased $10,100 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms

of 3/15, n/60. It returned $2,600 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.
a) Assuming that Swifty uses the perpetual method for recording merchandise transactions, record
the purchase, return, and payment using the gross method.
(b) Assuming that Swifty uses the periodic method for recording merchandise transactions, record the
purchase, return, and payment using the gross method.
(c) At what amount would the purchase on February 1 be recorded if the net method were used?
Business
2 answers:
Sonbull [250]3 years ago
8 0

Answer:

     perpetual method

Inventory  9090 debit

Accounts Payable  9090 credit

--to record purchase--

Accounts Payable  2340 debit

Inventory          2340 credit

--to record returned goods--  

Accounts Payable  6750 debit

Inventory       202.5 credit

Cash              6547.5

--to record payment within discount--  

     periodic method:

Purchase   10,100 debit

Accounts Payable  10,100 credit

--to record purchase--

Accounts Payable  2,600 debit

Purchase Returns           2,600 credit

--to record returned goods--  

Accounts Payable      7,500 debit

Purchase Discount and Allowance  952.5  credit

Cash                              6547.5 credit

--to record payment within discount--  

Explanation:

Perpetual mehod;

          10,100 x (1 - 10%) = 9,090

           2,600 x (1 - 10%) = 2,340

balance   9,090 - 2,340 = 6,750

discount 6,750 x 3% = 202.5

Period method:

purhcase 10,100

return 2,600

discount and allowance: 7,500 - 6,547.5 = 952.5

malfutka [58]3 years ago
5 0

Answer:

A) perpetual method:

February 1, 2020, merchandise purchased on account credit terms 3/15, n/60

Dr Merchandise inventory 9,090

    Cr Accounts payable 9,090

February 4, 2020, merchandise returned

Dr Accounts payable 2,340

    Cr Merchandise inventory 2,340

February 13, 2020, invoice paid within discount term

Dr Accounts payable 6,750

    Cr Cash 6,547.50

    Cr Purchase discounts 202.50

B) periodic method:

February 1, 2020, merchandise purchased on account credit terms 3/15, n/60

Dr Purchases 9,090

    Cr Accounts payable 9,090

February 4, 2020, merchandise returned

Dr Accounts payable 2,340

    Cr Purchases 2,340

February 13, 2020, invoice paid within discount term

Dr Accounts payable 6,750

    Cr Cash 6,547.50

    Cr Purchase discounts 202.50

C) using net method:

perpetual

Dr Merchandise inventory 8,817.30

    Cr Accounts payable 8,817.30

periodic

Dr Purchases 8,817.30

    Cr Accounts payable 8,817.30

Both perpetual and periodic inventory systems record purchase prices after trade discounts, there is no ledger account for trade discounts. In this case, both systems record the initial purchase at $10,100 x 90% = $9,090. The difference between both systems is that periodic system uses the purchases account while perpetual uses the inventory account directly.

The main difference between perpetual and periodic inventory systems is when COGS are determined, since perpetual inventory calculates COGS after each sale, instead, the periodic inventory calculates COGS at the end of the accounting period.

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Which of the following is an example of an economic change brought about by globalization
finlep [7]

Answer:

D) increases in the outsourcing of labor

Explanation:

Globalisation is the process by which business develop operations internationally. It involves integration of people, business and governments.

Outsourcing of labor involve hiring of manpower outside an organisation to carry out some job functions.

Because of the variety of talent available globally, and the reduced overhead costs, more businesses are outsourcing job functions.

3 0
3 years ago
A sales associate wants to earn at least $90,000 next year. she plans that 60% of the income will come from listings sold and 40
Nataly [62]
60% of $90,000 is: 60/100*90,000=0.6*90,000=54,000
<span>So, the sales associate plans $64,000 from the total income to come from sold listings .
</span>40% of $90,000 is: 40/100*90,000=0.4*90,000=36,000
So, the sales associate plans $36,000 from the total income to come from sales made.
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5 0
3 years ago
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 220.00; Variable expense
dalvyx [7]

Answer:

The answer is d. 3911

Explanation:

First, we obtain the contribution margin, wih the formula Selling price per unit minus variable expense per unit. So, the contribution margin per unit is 220 - 97.5 = 122.5.

Next, knowing how much each unit contributes to cover the fixed costs, we can calculate how many units do we need to pay the fixed expenses. This is called "break even point" or BEP. The formula is Fixed Expenses / Contribution margin per unit. So, the BEP is 448,090 / 122.5 = 3,657.88.

With those two things, the final task is to calculate how many units we need, covered the fixed expenses, to achieve the company target profit. The formula is Target profit / Contribution margin per unit. So, the number of units is 31,000 / 122.5 = 253.06.

Finally, we add these two number, to obtain the total units needed to cover the fixed costs and achieve the target profit: 3,657.88 + 253.06 = 3,910.64 = 3,911

7 0
3 years ago
Fixed-time-period inventory models generate order quantities that vary from time period to time period, depending on the usage r
aleksandrvk [35]

Answer:

The correct answer is (A) True.

Explanation:

Fixed order period systems review inventory levels at fixed intervals of time and place orders that cover enough material so that inventory levels are recovered to a certain level. Orders are placed in equally spaced time intervals and the quantities ordered in each cycle are calculated using this formula:

 Order quantity = Higher inventory target - Inventory level + EDDLT

The upper goal of the inventory is usually determined from the amount of space allocated to a material, either in a warehouse or on the shelves of a store. If at the time of the revision of the inventory level it is relatively low, larger quantities are placed. If, on the other hand, during the review the inventories are high, smaller amounts are placed.

3 0
3 years ago
Unrealized holding gains and losses on securities available for sale would have the following effects on accumulated other compr
labwork [276]

Option D Increase Decrease

Adjust a gain by crediting as unrealized gain and record a loss by debiting as unrealized loss in accumulated and other income account

Explanation:

Unrealized holding of gains and losses on securities available for sale may consider as unrealized gain or unrealized loss by considering the current market value (price) of such related securities in the securities market. The unsold securities occurs only on paper and has yet to be recognized by selling the same.

Only some unrealized gains are reported on the income statement and increase your net income, or profit and some unrealized losses are reported on the income statement and decrease your net income, or profit.  So the option D - increase decrease has to be taken as answer for this question.

7 0
3 years ago
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