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madam [21]
3 years ago
13

Required information Exercise 6-9A Record transactions using a perpetual system (LO6-5) Skip to question [The following informat

ion applies to the questions displayed below.] Littleton Books has the following transactions during May.
May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30.
May 3 Pays cash for freight costs of $200 on books purchased from Readers.
May 5 Returns books with a cost of $400 to Readers because part of the order is incorrect.
May 10 Pays the full amount due to Readers.
May 30 Sells all books purchased on May 2 (less those returned on May 5) for $4,000 on account. Exercise 6-9A
Required: 1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
Korolek [52]3 years ago
6 0

Answer:

Littleton Books

Journal Entries:

May 2 Debit Inventory $3,300

          Credit Accounts Payable (Readers Wholesale) $3,300

To record the purchase of books on account, terms, 1/10, n/30.

May 3 Debit Freight-in $200

          Credit Cash Account $200

To record the payment of freight costs for books purchased from Readers.

May 5 Debit Accounts Payable (Readers Wholesale) $400

          Credit Inventory $400

To record the return of books.

May 10 Debit Accounts Payable (Readers Wholesale) $2,900

            Credit Cash Discount Received $29

            Credit Cash Account $2,871

To record the settlement of account.

May 30 Debit Accounts Receivable $4,000

            Credit Sales Revenue $4,000

To record the sale of books on account.

May 30 Debit Cost of goods sold $2,900

            Credit Inventory $2,900

To record the cost of goods sold.

Explanation:

The journal entries in Littleton Books' accounting records show the accounts to be debited and credited as they occur on a daily basis.

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Answer:

Dr Interest receivable $29,000

Cr Interest revenue $29,000

Explanation:

Preparation of the appropriate interest entry on December 31, 2021

December 31, 2021

Dr Interest receivable $29,000

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5 0
3 years ago
On January 1, 2020, Snitchy Company purchased a tractor-trailer rig for $188,000.
olasank [31]

Answer:a

Explanation:

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Mileage in 2021 = 41480

Depreciation rate = 1/8*100 = 12.5%

Straight line :

160,000/8 = 20,000                     2020                      2021

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Units of production   (44500/352000*160000) (41480/352000*160000)

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6 0
3 years ago
House Loan. Suppose you take out a home mortgage for $180,000 at a monthly interest rate of 0.5%. If you make payments of $1000/
zzz [600]

Answer:

It will be after 462 months

Explanation:

We use the annuity formula for present value

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

We post our know values and start solving for time:

1000 * \frac{1-(1+0.005)^{-time} }{0.005} = 180,000

First we clear the dividend:

1-(1+0.005)^{-time} = 180,000/1000\times 0.005

Then we clear for the power

(1.005)^{-time} = 1-0.9

We set up the formula using logarithmic

log_{1.005}\: 0.1 = -time

And use logarithmic properties to solve for time:

\frac{log\:0.1}{log\:1.005} = -time

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7 0
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Firdavs [7]

Television or radio ad

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iogann1982 [59]

Answer:

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The Huffington Post generates revenue by selling ad-supported content, but that is not the mission of the company.

The main reason of any company to exist, including the Huffington Post, is to satisfy their customers' needs. In this case, the Huffington Post satisfies its clients' needs for entertainment and information.

5 0
3 years ago
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