Problem- 1
Item accounted in bodega 4,000,000
Items included in the count specifically segragated per sale contract -100,000
Items in receiving department, retuned by customer, in good condition 50,000
Items ordered and in the receiving department, invoice recorded 400,000
Items shipped today, invoiced mailed, FOB destination 150,000
Items currently used in windows display 200,000
Items on counter for sales 800,000
Items included in count, damage and usable -50,000
Items in the shipping department 250,000
Correct amount of inventory 5,700,000
Problem-2
Materials 1,400,000
Goods in process 650,000
Finished good in factory 2,000,000
Finish good in company retailed store (750k/150%) 500,000
Finish goods in hand of consignee including 40% profit or loss (400k x.60) 240,000
Finish good in transit to customer, ship FOB distination at cost 250,000
Finished good out of approval, at cost 100,000
Materials in transit shipped FOB shipping point, excluding 30k freight in (+330k) 360,000
Correct inventory 5,500,000
Problem-3
Finish goods 2,000,000
Finish good held by salesmen 100,000
Goods in process (720K/.80%) to be review 720,000
Materials 1,000,000
defective materials returned to suppliers for replacement 100,000
Gasoline and oil for testing finished goods 110,000
Machine lubricants 60,000
Correct inventory 4,090,000
Periodic Inventory system
Purchase (800 x 1k) 800,000
Accounts Payable 800,000
Accounts payable (50k x1) 50,000
Purchase Return 50,000
Accounts Payable (600x 1k) 600,000
Cash 600,000
Accounts Receviable (790 x 2k) 1,580,000
Sales 1,580,000
Sales Return (20 x 2k) 40,000
Accounts Receivable 40,000
Cash (680x 2k) 1,360,000
Accounts receivable 1,360,000
Inventory Dec 31 60,000
Income Summary (60 x1k) 60,000
Inventory Jan 1 90,000
Purchase 800,000
Purchase Return -50,000 750,000
Godds Avail for Sales 840,000
Less: Inventory -Dec 31 -60,000
Cost of Sales 780,000
Perpetual Inventory system
Mechandise Inventory 800,000
Accounts payable 800,000
Accounts Payable 50,000
Merchandise Inventory 50,000
Accounts Payable 600,000
Cash 600,000
Accounts Receivable 1,580,000
Sales 1,580,000
Cost of sales (790x 1k) 790,000
Merchandise Inventory 790,000
Sales Return 40,000
Accounts Receivable 40,000
Merchandise Inventory (20 x 1k) 20,000
Cost of Sales 20,000
Cash 1,360,000
Accounts Receivable 1,360,000
Inventory Shortage 10,000
Merchandising Inventory 10,000
Merchandise Inventory 70,000
Physical count 60,000
Shortage 10,000
Cost of Sales (790k-20k) 770,000
Inventory shortage 10,000
Adjusted cost of sales 780,000
Company A
List Price 500,000
Less: First trade discount (20% x 500K) 100,000
400,000
Second discount (10%x400k) 40,000
360,000
third trade discount (10%x 360K) 36,000
Invoice Price 324,000
Less: Cash discount (2% x 324k) 6,480
Payment within the discount period 317,520
Purchase 324,000
Accounts Payable 324,000
Accounts Payable 324,000
Cash 317,520
Purchase Discount 6,480
Company B
List Price 500,000
Less: Trade Discount (35% x 500k) 175,000
Invoice Price 325,000
Less: Cash discount (2% 325k) 6,500
Payment within the discount period 318,500
Purchase 325,000
Accounts Payable 325,000
Accounts Payable 325,000
Cash 318,500
Purchase Discount 6,500
Gross method
Purchase 4,750,000
Accounts Payable 4,750,000
Freight in 250,000
Cash 250,000
Accounts Payable 1,650,000
Cash 1,617,000
Purchase Discount (1,650M x.02) 33,000
Accounts Payable 2,100,000
Cash 2,100,000
No Entry
Inventory 1,000,000
Income Summary 1,000,000
Gross Method Net Method
Purchase 4,750,000 4,655,000
Freight in 250,000 250,000
Total 5,000,000 4,905,000
Less: Purchase Discount 33,000
Goods Avail for sale 4,967,000 4,905,000
Less: Inventory dec 31 1,000,000 981,000
Cost of sale 3,967,000 3,924,000
Ending Inventory
Gross (5M/ 5) 1,000,000
Net (4,905,000/ 5) 981,000
Net Method
Purchase (4,750,000 x .98) 4,655,000
Accounts Payable 4,655,000
Freight In 250,000
Cash 250,000
Accounts Payable 1,617,000
Cash 1,617,000
Accounts Payable 2,058,000
Purchase Discount lost 42,000
Cash 2,100,000
Purchase Discount lost 20,000
Accounts Payable (1M x 2%) 20,000
Inventory 981,000
Income Summary 981,000
Gross Method
Merchadise Inventory 1,000,000
Accounts Payable 1,000,000
Accounts Payable 50,000
Cash 50,000
Accounts Payable 800,000
Cash 784,000
Cost of sales 16,000
Accounts Payable 150,000
Cash 150,000
Cash 1,200,000
Sales 1,200,000
Cost of Sales 700,000
Merchandise Inventory (1M x 70%) 700,000
Net Method
Merchandise Inventory (1M x .98) 980,000
Accounts Payable 980,000
Accounts Payable 50,000
Cash 50,000
Accounts Payable 784,000
Cash (800k x.98) 784,000
Accounts Payable 146,000
Purchase Discount Lost 4,000
Cash 150,000
Cash 1,200,000
Sales 1,200,000
Cost of sales 686,000
Merchandise Inventory (980k. 70) 686,000
Inventory 50,000
Income Summary 50,000
Accounts Payable 75,000
Purchases 75,000
Purchases 30,000
Accounts Payable 30,000
Inventory 30,000
Income Summary 30,000
Income Summary 90,000
Inventory 90,000
Purchases 140,000
Accounts Payable 140,000
