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Umnica [9.8K]
3 years ago
5

During the month of June, Betty Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 P

urchased goods for $7,100 from North Inc. with terms 2/10, n/30. 5 Returned goods costing $2,600 to North Inc. for full credit. 6 Purchased goods from South Corp. for $2,500 with terms 2/10, n/30. 11 Paid the balance owed to North Inc. 22 Paid South Corp. in full. Required: Prepare journal entries to record the transactions, assuming Betty uses a perpetual inventory system. Indicate debits with DR and credits with CR.
Business
1 answer:
Assoli18 [71]3 years ago
7 0

Answer:

Betty Incorporated

Journal Entries:

June 3:

DR Inventory $7,100

CR Accounts Payable (North Inc.) $7,100

To record the purchase of goods on account with terms 2/10, n/30.

June 5:

DR Accounts Payable (North Inc.) $2,600

CR Inventory $2,600

To record the return of goods on account.

June 6:

DR Inventory $2,500

CR Accounts Payable (South Corp.) $2,500

To record the purchase of goods on account with terms 2/10, n/30.

June 11:

DR Accounts Payable (North Inc.) $4,500

CR Cash Account $4,410

CR Cash Discount $90

To record the payment of balance owed to North Inc.

June 22:

DR Accounts Payable (South Corp.) $2,500

CR Cash Account $2,500

To record the payment of balance owed to South Corp.

Explanation:

The trade terms 2/10, n/30 mean that both North Inc. and South Corp. offered 2% cash discounts on amount paid by Betty Incorporated if it could settle its bills within 10 days.  The net allowed credit days are 30 days, after which Betty Incorporated could be charged interest for late payment.  It did not utilize the discount offered by South Corp. as it paid its bills after 16 days instead of within 10 days as stated in the trade terms.

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Answer:

The correct answer is C

Explanation:

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3 years ago
The degree of operating leverage can be measured by​ ________. A. multiplying the contribution margin by sales revenue B. dividi
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Answer:

Option C is the answer

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4 0
3 years ago
Using the fixed-order quantity model, which of the following is the total ordering cost of inventory given an annual demand of 3
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Answer:

E) $2,400

Explanation:

optimal order quantity = sqrt{(2*D*S)/H}

                                     = sqrt{(2*36,000*$80)/$4}

                                     = $1,200

number of orders per year = $36,000/$1,200

                                             = $30

total ordering cost = $30*$80

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Therefore, The total ordering cost of inventory is $2,400.

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When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is
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Explanation:

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As such, when inventory declines in value below original (historical) cost, and this decline is considered other than temporary, the maximum amount that the inventory can be valued at is the net realizable value.

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The accountant needs to determine a consistent method for allocating joint costs to products.

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