90.2K

Verified Solution

Link Copied!

3. Net Method and Perpetual Inventory (15 points) Prepare journals entries for the following assuming that YouDo That Inc. uses a perpetual inventory method and records purchases at their net amounts. July 31 You Do That company has $40,000 as it ending inventory this amount is reported at net of cost. (hints, no journal entry is necessary) August 1 Purchased merchandise from Cryout Company for $240,000 with the terms of 4/10, n/30. August 3 Returned $40,000 of the merchandise to the Cryout Company August 6 Paid the amount owed to the Cryout Company. August 10 Sold all of the merchandise on hand Inclusive of the beginning Inventory for $680,000 of which $240,000 was in cash and $440,000 was on credit. August 13 Purchased merchandise from the Bodoya Company for $120,000 with the terms of 5/10, n/30. August 15 Returned $40,000 of the merchandise purchased from the Bodoya Company August 28 Paid the amount owed to Bodoya Company in full Compute Cost of Good Sold (5 points) Thatisit Inc. Accounting records were as follows: Ending Inventory at August 31, 2021 was $300,000 A. Purchases made during the month of September amounted to $650,000 B. The company Sales reported for September was $ 950,000 C. The company gross profit margin for the month of September was 45% Requirement: Compute the Cost of Goods Sold and the Ending Inventory for the month of September 2020

Answer & Explanation Solved by verified expert

See Answer