Tahoe Ski Company uses the perpetual inventory system and the net method of accounting for purchases. The company had the following transactions during January:January 6:Purchased $4,000 of inventory. The seller's credit terms are 2/10, n/30.January 8:Returned $200 worth of defective units and received full credit.January 15: Paid the amount due, less the returned items.Prepare journal entries to record each of the preceding transactions.
What will be an ideal response?
| January 6: | Merchandise Inventory…………….. | 3,920 |
| ? | Accounts Payable…………… | 3,920 |
| January 8: | Accounts Payable…………………. | 196 |
| ? | Merchandise Inventory……. | 196 |
| January 15: | Accounts Payable…………………. | 3,724 |
| ? | Cash………………………... | 3,724 |
You might also like to view...
Which leadership qualities tend to be equally important in most cultures around the world?
a. participative leadership b. inspirational/visionary leadership c. paternalistic leadership d. direct leadership
Why is ethnocentrism an obstacle to effective leadership?
A. it prevents people from fully respecting the viewpoints of others B. it is focused on cultural competence, not individual rights C. it is focused on diversity of opinions of others D. it encourages understanding of multiple viewpoints of others
[The following information applies to the questions displayed below.] Chase Co. uses the perpetual inventory method. The inventory records for Chase reflected the following information:Jan 1Beginning Inventory300 units @ $2.30Jan 12Purchase400 units @ $2.10Jan 18Sales500 units @ $3.80Jan 21Purchase300 units @ $2.40Jan 25Purchase100 units @ $2.20Jan 31Sales450 units @ $3.80Assuming Chase uses a FIFO cost flow method, what is the ending inventory on January 31?
A. $345 B. $340 C. $1,020 D. $330
Would you advise organizations to focus on extrinsic or intrinsic motivation? Explain.
What will be an ideal response?