Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. taras treasures uses the perpetual inventory m

2. Taras Treasures uses the Perpetual Inventory Method. She sells her inventory to her...

60.1K

Verified Solution

Question

Accounting

2. Taras Treasures uses the Perpetual Inventory Method. She sells her inventory to her customer on Accounts Receivable, with 2/10, Net/30 payment options.
Tara had the following entries during December 2023:
a. Tara purchases $40,000 in Inventory from Keiras Karts Company on Account Payable, Terms FOB Shipping Point, 1/10, Net/30
b. Tara pays $500 in shipping costs
c. Tara sells Inventory to Noelles Napkin Company for $30,000 on Accounts Receivable, the Inventory Cost $15,000. FOB Destination.
d. Tara pays the Delivery (Shipping) Expenses for the sale to Noelle.
e. Tara returns Inventory for $5,000 back to Keira
f. Tara pays Keira within the 10 day discount period.
g. Noelle returns $6,000 of the sale back to Tara, the Inventory returned cost $3,000.
h. Noelle pays Tara within the 10 days discount period:
REQUIRED:
i. Record the entries in the Journal
ii. What is the ending balance in Inventory and Cost of Goods Sold.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

25 What is sec 246 equivalent to O A OB sec 24 C sec 66...

Biology
1.2K views

Explain the meaning of modulus of uniformity of a feedstuff or mixed feed. Explain the meaning and...

Geometry
1.2K views

Show that the two triangles are similar N M X 45 Y ZNZ 45 N...

Basic Math
1.2K views

Which style do these musical characteristics describe Music that used vernacular language rather than Latin...

Basic Math
1.2K views

Problem ID PRABMQ2D Which polynomial function has zeros when x 5 3 7 A f...

Basic Math
1.2K views

Given that f(x)=x-1 and g(x) = 4x + 4, find (g-f)(6), if it exists.Select the...

Algebra
1.2K views

Use the following matrix to perform the indicated operation when possible If not possible enter...

Accounting
1.2K views

Lance's Diner tiene un especial de almuerzo caliente todos los das de la semana y...

Accounting
1.2K views

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year....

Accounting
1.2K views

Stone Company is facing several decisions regarding investing and financing activities. Address each decision independently....

Finance
1.2K views

Explain in 1-5 sentences, solve the equation In real life, when we make financial...

Finance
1.2K views

Your credit card has a current balance of $2,000. The interest rate is 2% per...