Accounting Homework Week 3
bfwneysqt85
hw20ch20820b-08.06.xlsProblem
| B. J. Stewart Furniture Company had the following transactions relating to the purchase and sale of leather sofas. There was no beginning inventory. | |
| Purchased 100 units on account at $1,000 per unit Sold 75 units for cash at $2,000 per unit Customers returned 3 defective units for cash refunds Stewart returned the 3 defective units to its supplier for credit on account | |
| (a) | Assuming Stewart uses a periodic inventory system, what journal entries would be needed to record the preceding activity? |
| (b) | Assuming Stewart uses a periodic inventory system, show the calculation of gross profit. You may assume that Stewart conducted a physical count of ending inventory and confirmed that 25 were still on hand. |
| (c) | Assuming Stewart uses a perpetual inventory system, what journal entries would be needed to record the preceding activity? |
| (d) | Assuming Stewart uses a perpetual inventory system, show the calculation of gross profit. If Stewart uses a perpetual system, would there be any need to perform a periodic physical count of leather sofas on hand? |
&R&"Myriad Web Pro,Bold"&20B-08.06
B-08.06
Worksheet
| (a) | |||||
| GENERAL JOURNAL | |||||
| Date | Accounts | Debit | Credit | ||
| (b) | |||||
| (c) | |||||
| GENERAL JOURNAL | |||||
| Date | Accounts | Debit | Credit | ||
| (d) |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-08.06
B-08.06
