60.1K

Verified Solution

Link Copied!

Stooge Wholesale has the following transactions during the month of January 2021:

Jan. 1	Purchased inventory from Curly Inc. for $5,000, FOB destination, terms 2/10 n/30.
Jan. 2	The appropriate company paid $100 freight on the January 1 purchase.
Jan. 6	Returned $1,000 worth of goods to Curly as they were the wrong colour.
Jan. 7	Sold half of the remaining inventory purchased from Curly to Larry Inc. for $6,000, FOB destination, terms 2/20 n/30.
Jan. 8	The appropriate company paid $40 freight on the January 7 sale.
Jan. 10	Paid Curly the entire amount owed to him.
Jan. 12	Purchased inventory worth $5,000 from Moe Inc., FOB shipping point, terms 3/15 n/45.
Jan. 13	The appropriate company paid $75 freight on the January 12 purchase.
Jan. 17	Sold half of the inventory purchased from Moe to Shemp Ltd. for $5,000, FOB shipping point, terms 1/10 n/20.
Jan. 18	The appropriate company paid $80 freight on the January 17 sale.
Jan. 22	Shemp returned $500 worth of the goods bought on January 17 as you shipped the wrong size.
Jan. 25	Shemp paid their outstanding balance.
Jan. 30	Larry paid their outstanding balance.
Jan. 31	Paid Moe the entire amount owed to him.

REQUIRED -

Use the expanded accounting equation to answer the following questions.

How would Stooge Wholesale record the January 1 transaction?

a. Increase both Accounts Payable and Inventory

b. Increase both Purchases and Inventory

c. Increase both Accounts Payable and Inventory Expense

d. Increase both Purchases and Inventory Expense

e. Increase both Accounts Payable and Purchases

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 2 transaction?

a. Increase both Inventory and Accounts Payable

b. Increase Freight Expense and decrease Cash

c. Increase both Freight Expense and Accounts Payable

d. Increase both Inventory and Freight Expense

e. No entry is required.

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 6 transaction?

a. Decrease both Purchases and Inventory Expense

b. Decrease Inventory and increase Purchase Returns

c. Decrease both Accounts Payable and Inventory

d. Decrease both Accounts Payable and Inventory Expense

e. Decrease Accounts Payable and increase Purchase Returns

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 7 transaction?

a. Increase Sales and Accounts Receivable $2,000 each, and increase Cost of Goods Sold and decrease Inventory $6,000 each

b. Increase Sales and Accounts Receivable $6,000 each, and increase Cost of Goods Sold and decrease Inventory $6,000 each

c. Increase Sales and Accounts Receivable $6,000 each

d. Increase Sales and Accounts Receivable $6,000 each, and increase Cost of Goods Sold and decrease Inventory $2,000 each

e. Increase Cost of Goods Sold and decrease Inventory $2,000 each

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 8 transaction?

a. Increase both Accounts Payable and Freight Expense

b. Decrease Cash and increase Freight Expense

c. Decrease both Cash and Inventory

d. Decrease both Cash and Inventory

e. No entry is required

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 10 transaction?

a. Decrease Cash, Inventory, and Accounts Payable.

b. Decrease Cash and Accounts Payable, and increase Inventory.

c. Decrease Cash and Inventory, and increase Accounts Payable.

d. Decrease Cash and increase both Inventory and Accounts Payable.

e. Decrease Cash and Accounts Payable only.

Enter the letter that corresponds to your choice. (A B C D E)

How much does Stooge Wholesale pay Curly on January 10?

How would Stooge Wholesale record the January 12 transaction?

a. Increase both Purchases and Inventory Expense

b. Increase both Accounts Payable and Purchases

c. Increase both Purchases and Inventory

d. Increase both Accounts Payable and Inventory

e. Increase both Accounts Payable and Inventory Expense

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 13 transaction?

a. Increase Inventory and decrease Cash

b. Increase Freight Expense and decrease Cash

c. Increase both Inventory and Accounts Payable

d. Increase both Freight Expense and Inventory

e. No entry is required.

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 17 transaction?

a. Increase Cost of Goods Sold and decrease Inventory $2,500 each

b. Increase Sales and Accounts Receivable $5,000 each

c. Increase Sales and Accounts Receivable $2,500 each, and increase Cost of Goods Sold and decrease Inventory $5,000 each

d. Increase Sales and Accounts Receivable $5,000 each, and increase Cost of Goods Sold and decrease Inventory $5,000 each

e. Increase Sales and Accounts Receivable $5,000 each, and increase Cost of Goods Sold and decrease Inventory $2,500 each

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 18 transaction?

a. Decrease Cash and increase Inventory

b. Decrease Cash and increase Freight Expense

c. Increase both Accounts Payable and Freight Expense

d. Decrease both Cash and Inventory

e. No entry is required.

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 22 transaction?

a. Increase Inventory and decrease Cost of Goods Sold $1,000 each, and decrease Accounts Receivable and increase Sales Returns $500 each

b. Increase Inventory and decrease Cost of Goods Sold $500 each, and decrease Accounts Receivable and increase Sales Returns $1,000 each

c. Increase Inventory and decrease Cost of Goods Sold $500 each, and decrease Accounts Receivable and increase Sales Returns $500 each

d. Increase Inventory and decrease Cost of Goods Sold $500 each

e. Decrease Accounts Receivable and increase Sales Returns $1,000 each

Enter the letter that corresponds to your choice. (A B C D E)

How would Stooge Wholesale record the January 25 transaction?

a. Increase Cash and decrease Accounts Receivable only

b. Increase Cash and decrease Sales Discounts (increasing net sales), and decrease Accounts Receivable

c. Increase Cash and Sales Discounts (reducing net sales), and decrease Accounts Receivable

d. Increase Cash and decrease both Sales and Accounts Receivable

e. Increase both Cash and Sales, and decrease Accounts Receivable

Enter the letter that corresponds to your choice. (A B C D E)

How much does Shemp pay Stooge Wholesale on January 25?

How would Stooge Wholesale record the January 30 transaction?

a. Increase Cash and decrease Accounts Receivable only

b. Increase Cash and decrease both Sales and Accounts Receivable

c. Increase both Cash and Sales, and decrease Accounts Receivable

d. Increase Cash and increase Sales only

e. Increase both Cash, Sales, and Accounts Receivable

Enter the letter that corresponds to your choice. (A B C D E)

How much does Larry pay Stooge Wholesale on January 30?

How would Stooge Wholesale record the January 31 transaction?

a. Decrease Cash and Accounts Payable, and increase Inventory.

b. Decrease Cash and Inventory, and increase Accounts Payable.

c. Decrease Cash and increase both Inventory and Accounts Payable.

d. Decrease Cash and Accounts Payable only

e. Decrease Cash, Inventory, and Accounts Payable.

Enter the letter that corresponds to your choice. (A B C D E)

How much does Stooge Wholesale pay Moe on January 31?

PLEASE ANSWER ASAP WILL GIVE LIKES!!!

Answer & Explanation Solved by verified expert

See Answer