182.For each of the following, calculate the cost of inventory reported on the balance sheet.
(a)The total merchandise on hand at the end of the year as determined by taking a physicalinventory is $62,000. Of the $62,000, $8,000 has been sold FOB destination and is awaitingpickup by the carrier.
(b)The total merchandise inventory counted at the end of the year was $63,000. Excludedfrom the count were purchases of $6,000 in transit under FOB shipping point terms.
(c)The total merchandise inventory counted at the end of the year was $75,000. Excludedfrom the count were purchases of $5,000 in transit under FOB destination terms.
183.Using the perpetual inventory system, journalize the entries for the following selected transactions:
(a)Sold merchandise on account for $12,000, terms n/30. The cost of the merchandise soldwas $6,500.
(b)Sold merchandise to customers who used MasterCard and VISA, $9,500. The cost of themerchandise sold was $5,300.
(c)Sold merchandise to customers who used American Express, $2,900. The cost of themerchandise sold was $1,700.
(d)Paid an invoice from First National Bank for $385, representing a service fee for processingMasterCard and VISA sales.
(e)Received $2,825 from American Express Company after a $75 collection fee had beendeducted.
184.Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the following terms: FOBdestination, 2/10, n/30. The seller prepays the freight costs of $85 (debit Delivery Expense for the freightcosts). Prior to payment for the goods, the seller issues a credit memo for $750 to the customer for merchandisecosting $425 that is returned. Payment is received within the discount period. The company uses a perpetualinventory system.
Record the foregoing transactions of the seller in the sequence indicated below.
(a)Sold the merchandise, recognizing the sale and cost of merchandise sold.
(b)Paid the freight charges.
(c)Issued the credit memo.
(d)Received payment from the customer.
185.Based on the information below, journalize the entries for the seller and the buyer. Both use a perpetual inventorysystem.
(a)Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shippingpoint. The cost of the merchandise is $2,850. The seller prepays the freight of $75.
(b)Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420.
(c)Buyer pays within the discount period.
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