Question: Journalize the following transactions that occurred
Journalize the following transactions that occurred in November 2018 for Julie’s Fun World. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Julie’s Fun World estimates sales returns at the end of each month.
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Nov. 4 Purchased merchandise inventory on account from Vera Company, $5,000. Terms 3/10, n/EOM, FOB shipping point. 6 Paid freight bill of $100 on November 4 purchase. 8 Returned half the inventory purchased on November 4 from Vera Company. 10 Sold merchandise inventory for cash, $1,100. Cost of goods, $400. FOB destination. 11 Sold merchandise inventory to Geary Corporation, $11,100, on account, terms of 2/10, n/EOM. Cost of goods, $6, 105. FOB shipping point. 12 Paid freight bill of $20 on November 10 sale. 13 Sold merchandise inventory to Caldwell Company, $9,500, on account, terms of n/45. Cost of goods, $5,225. FOB shipping point. 14 Paid the amount owed on account from November 4, less return and discount. 17 Received defective inventory as a sales return from the November 13 sale, $500. Cost of goods, $275. 18 Purchased inventory of $3,600 on account from Rainman Corporation. Payment terms were 2/10, n/30, FOB destination. 20 Received cash from Geary Corporation, less discount. 26 Paid amount owed on account from November 18, less discount. 28 Received cash from Caldwell Company, less return. Purchased inventory from Sandra Corporation for cash, $12,300, FOB shipping point. Freight in paid to shipping company, $170. 29
> On December 31, Jack Photography Supplies estimated that approximately 2% of merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns.
> For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both. a. Normally used for relatively inexpensive goods. b. Keeps a running computerized record of merchandise inventor
> What are the four steps involved in the closing process for a merchandising company?
> Describe FOB shipping point and FOB destination. When does the buyer take ownership of the goods, and who typically pays the freight?
> What are the two types of inventory accounting systems? Briefly describe each.
> Highlight the differences in the closing process when using the periodic inventory system rather than the perpetual inventory system.
> Describe the calculation of cost of goods sold when using the periodic inventory system.
> The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2018. The retained earnings was $39,000 at the beginning of the year. At year end, common stock was $13,000 and dividends were $57,000. Prepare the
> Is an adjusting entry needed for inventory shrinkage when using the periodic inventory system? Explain.
> Describe the journal entry(ies) when recording a sale of inventory using the periodic inventory system.
> What account is debited when recording the payment of freight in when using the periodic inventory system?
> When recording purchase returns and purchase allowances under the periodic inventory system, what account is used?
> What account is debited when recording a purchase of inventory when using a periodic inventory system?
> When a company has a contract involving multiple performance obligations, how must the company recognize revenue?
> What does the gross profit percentage measure, and how is it calculated?
> What financial statement is merchandise inventory reported on, and in what section?
> Describe the multi-step income statement.
> Describe the single-step income statement.
> The assets, liabilities, and equities of Damon Design Studio have the following balances at December 31, 2018. The retained earnings was $39,000 at the beginning of the year. At year end, common stock was $13,000 and dividends were $57,000. Prepare the
> What is inventory shrinkage? Describe the adjusting entry that would be recorded to account for inventory shrinkage.
> What is freight out and how is it recorded by the seller?
> When granting a sales allowance is there a return of merchandise inventory from the customer? Describe the journal entry(ies) that would be recorded.
> Under the new revenue recognition standard, what must companies do at the end of the period related to sales returns? Describe the journal entries that would be recorded.
> Under the new revenue recognition standard, how is the sale of inventory recorded?
> What are the two journal entries involved when recording the sale of inventory when using the perpetual inventory system?
> How is the net cost of inventory calculated?
> What is a purchase return? How does a purchase allowance differ from a purchase return?
> What would the credit terms of “2/10, n/EOM” mean?
> What account is debited when recording a purchase of inventory when using the perpetual inventory system?
> The account balances of Wilson Towing Service at June 30, 2018, follow: Requirements: 1. Prepare the balance sheet for Wilson Towing Service as of June 30, 2018. 2. What does the balance sheet report? Equipment $ 25,850 Service Revenue $ 15,000 Off
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> How is gross profit calculated, and what does it represent?
> What is Cost of Goods Sold (COGS), and where is it reported?
> Describe the operating cycle of a merchandiser.
> What are the two types of merchandisers? How do they differ?
> What is a merchandiser, and what is the name of the merchandise that it sells?
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> What is the closing process?
> Why are financial statements prepared in a specific order? What is that order?
> What are reversing entries? Are they required by GAAP?
> What is the current ratio, and how is it calculated?
