47) A company which uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.   The company sold the whole lot to a...





47) A company which uses the perpetual inventory system purchased an order of 500 pallets of industrial soap for $8,000 and paid $750 for the freight-in.   The company sold the whole lot to a supermarket chain for $10,000 on account. The company uses the specific-identification-method of inventory costing.  Which of the following entries correctly records the Cost of goods sold?



A)

















Cost of goods sold




8,750







Inventory







8,750




B)

















Inventory




8,750







Cost of goods sold







8,750




C)

















Cost of goods sold




8,000







Sales revenue







8,000




D)

















Cost of goods sold




8,000







Inventory







8,000






48) A company uses the perpetual inventory system in connection with the specific-identification-method.  The company purchased 30 industrial diamonds for $500 per unit.  Later in the month, they purchased another 20 diamonds from another supplier for $480 per unit.  On the last day of the month, they sold 18 diamonds to a customer at a price of $800 per unit.  Of the 18 diamonds, 3 came from the first batch and the remainder came from the second batch.  Which of the following journal entries correctly records the Sales revenues?



A)

















Cash




14,400







Sales revenue







14,400




B)

















Sales revenue




14,400







Inventory







14,400




C)

















Cash




8,700







Sales revenue







8,700




D)

















Inventory




8,700







Sales revenue







8,700






49) A company uses the perpetual inventory system in connection with the specific-identification method.  The company purchased 30 industrial diamonds for $500 per unit.  Later in the month, they purchased another 20 diamonds from another supplier for $480 per unit.  On the last day of the month, they sold 18 diamonds to a customer at a price of $800 per unit.  Of the 18 diamonds, 3 came from the first batch and the remainder came from the second batch.  Which of the following journal entries correctly records the Cost of goods sold?



A)

















Inventory




14,400







Cost of goods sold







14,400




B)

















Sales revenue




14,400







Inventory







14,400




C)

















Cost of goods sold




8,700







Sales revenue







8,700




D)

















Cost of goods sold




8,700







Inventory







8,700








50) Henderson Sales purchased $500 of inventory on account.  Please provide the journal entry.







































51) Henderson Sales sold 400 units of product to a customer on account.   The selling price was $25 per unit, and the cost, according to the company's inventory records, was $12 per unit.  Please provide the journal entry to record the Sales revenue.







































52) Henderson Sales sold 400 units of product to a customer on account.   The selling price was $25 per unit, and the cost, according to the company's inventory records, was $12 per unit.  Please provide the journal entry to record Cost of goods sold.





































May 15, 2022
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