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  1. business
  2. accounting
  3. a) the income statement of forest supplies ltd inc

a) The income statement of Forest Supplies Ltd includes the items listed below Net sales...

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Accounting

a) The income statement of Forest Supplies Ltd includes the items listed below Net sales $800.000 Gross profit on sales 320,000 Beginning inventory

100,000 Discount received 15,000 Purchase returns and allowances 8,000 Freight-in 10.000 Operating expenses 300.000 Purchases 520.000 Required: Use the appropriate items listed above as a basis for determining: Cost of sales Cost of goods available for sale Ending inventory

b) On October 1, Cycle Mania, a bicycle store had an inventory of 15 twelve-speed bicycles at a cost of $150 each. During the month of October, the following transactions occurred. Oct. 3 Purchased 25 bicycles at a cost of $150 each from the Lyons Bicycle Company Ltd; terms n/30. 6 Sold 12 bicycles to Team Australia at $250 each; terms 2/10, n/30. Received credit from the Lyons Bicycle Company Ltd for the return of 2 defective bicycles. 13 Issued a credit to Team Australia for the return of one defective bicycle. 19 Purchased 10 bicycles from Huffy Bicycle Company Ltd at a cost of $125; terms 2/10, n/30. 20 Paid freight of $80 on the October 19 purchase. Required: Prepare the journal entries to record the transactions assuming the company uses a periodic inventory system.

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