Periodic inventory system - Perpetual inventory system
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BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets.
July 8: 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse.
July 31: The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers)
August 4: A new batch of 67 tablets was purchased at a total cost of $465,650
August 10: 5 of the tablets purchased on August 4 were returned to the supplier, as they were not of
the model ordered.
August 31: During the month 60 tablets were sold at a price of $10,350 each.
September 4: A customer, to whom 9 tablets were sold during the first business day of August, returned
3 of the instruments, as they were of another brand.
September 10: Owing to an increased demand, a further 115 tablets were purchased at a cost of $7,900
each; these were subject to a trade discount of 2% each.
September 30: 121 tablets were sold during September at a unit selling price of $11,085.
September 30: An actual count of inventory was carried out which revealed that there were 34 units of the “Alcatel” brand of merchandise in the store room.
Unless otherwise stated, assume that all purchases were on account and received on the dates stated.
1. Journalize the transactions for the month of July, assuming the company uses a:
- Periodic inventory system
- Perpetual inventory system
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- BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets July 8 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse July 31 The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4 A new batch of 67 tablets was purchased at a total cost of $465,650 August 10 5 of…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. July 8: 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse. July 31: The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4: A new batch of 67 tablets was purchased at a total cost of $465,650 August 10: 5 of the tablets…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. July 8 : 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse. July 31: The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4: A new batch of 67 tablets was purchased at a total cost of $465,650…
- BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. July 8 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse.July 31 The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers)August 4 A new batch of 67 tablets was purchased at a total cost of $465,650August 10 5 of the tablets…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. Subpart (D) to be solved July 31 - The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4 - A new batch of 67 tablets was purchased at a total cost of $465,650 August 10 - 5 of the tablets purchased on August 4 were returned to the supplier, as they were not of the model ordered. August 31 - During the month 60 tablets were sold at a price of $10,350 each. September 4 -…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. July 8: 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse. July 31: The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4: A new batch of 67 tablets was purchased at a total cost of $465,650 August 10: 5 of the tablets…
- BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020 with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19 pandemic, the business completed the following transactions relating to the “Alcatel” tablets. July 8 - 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse. July 31 - The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) August 4 - A new batch of 67 tablets was purchased at a total cost of $465,650 August 10 - 5 of the…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school suppliesincluding several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goodssold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19pandemic, the business completed the following transactions relating to the “Alcatel” tablets.July 8 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freightcharge of $248 cash on each tablet to have the inventory shipped from the point ofpurchase to their warehouse.July 31 The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 ofthese tablets were sold on account to longstanding customers)August 4 A new batch of 67 tablets was purchased at a total cost of $465,650August 10 5 of the tablets purchased on August…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school suppliesincluding several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goodssold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19pandemic, the business completed the following transactions relating to the “Alcatel” tablets.July 8 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freightcharge of $248 cash on each tablet to have the inventory shipped from the point ofpurchase to their warehouse.July 31 The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 ofthese tablets were sold on account to longstanding customers)August 4 A new batch of 67 tablets was purchased at a total cost of $465,650August 10 5 of the tablets purchased on August…
- During February, the last month of the fiscal year, Be My Valentine Ltd. sells $20,200 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $4,600 of these cards is redeemed for merchandise with a cost of $2,500. In April, further $11,500 of these cards is redeemed for merchandise with a cost of $3,800. The company uses a perpetual inventory system. Also in February, Be My Valentine had $1,000 of unused gift cards that were over one year old and were not expected to be used. The amount was in line with the company's normal breakage and all other gift cards of the same age had been used. Your answer is correct. Prepare journal entries to record the transactions for February, March, and April. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles…BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school suppliesincluding several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goodssold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19pandemic, the business completed the following transactions relating to the “Alcatel” tablets.July 8 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freightcharge of $248 cash on each tablet to have the inventory shipped from the point ofpurchase to their warehouse.July 31 The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 ofthese tablets were sold on account to longstanding customers)August 4 A new batch of 67 tablets was purchased at a total cost of $465,650August 10 5 of the tablets purchased on August…During February, the last month of the fiscal year, Be My Valentine Ltd. sells $21,400 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $4,600 of these cards is redeemed for merchandise with a cost of $2,500. In April, further $13,800 of these cards is redeemed for merchandise with a cost of $4,600. The company uses a perpetual inventory system. Also in February, Be My Valentine had $1,000 of unused gift cards that were over one year old and were not expected to be used. The amount was in line with the company's normal breakage and all other gift cards of the same age had been used.