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Practice Exercise 8-2 Date Account Titles and Explanation Debit Credit Nov. 30 D

ID: 2540568 • Letter: P

Question

Practice Exercise 8-2

Date

Account Titles and Explanation

Debit

Credit

Nov. 30

Date

Account Titles and Explanation

Debit

Credit

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SUBMIT ANSWER

Practice Exercise 8-2

Blossom Company sells one product. Presented below is information for January for Blossom Company.
Nov. 1 Inventory 340 units at $9 each 5 Purchase 180 units at $10 each 10 Sale 430 units at $18 each 15 Purchase 430 units at $9.50 each 21 Sale 470 units at $19 each 30 Purchase 400 units at $9.80 each
Blossom uses the FIFO cost flow assumption. All purchases and sales are on account. Your answer is partially correct. Try again. Assume Blossom uses a periodic system.

Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for November is 450 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 30

Your answer is incorrect. Try again. Compute gross profit using the periodic system.
Gross profit $

Your answer is partially correct. Try again. Assume Blossom uses a perpetual system.

Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Nov. 1Nov. 5Nov. 10Nov. 15Nov. 21Nov. 30

Your answer is incorrect. Try again. Compute gross profit using the perpetual system.
Gross profit $

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Explanation / Answer

a)Assume Blossom uses a periodic system. Date Account Titles and Explanation Debit Credit Nov. 5 Purchases (180 units x $10) $1,800.00 Accounts Payable $1,800.00 Nov.10 Accounts Receivables (430 units x $18) $7,740.00 Sales Revenue $7,740.00 Nov.15 Purchases (430 units x $9.50) $4,085.00 Accounts Payable $4,085.00 Nov.21 Accounts Receivables (470 units x $19) $8,930.00 Sales Revenue $8,930.00 Nov. 30 Purchases (400 units x $9.80) $3,920.00 Accounts Payable $3,920.00 Nov.30 Inventory (400 units x $9.80)+(50 units x 9.50) $4,395.00 Cost of Good sold (balancing figure) $8,470.00 Purchases $9,805.00 Inventory (340 units x $9) $3,060.00 b) Sales Revenue $16,670.00 Less: Cost of Good Sold -$8,470.00 Gross Profit $8,200.00 c)Assume Blossom uses a perpetual system Date Account Titles and Explanation Debit Credit Nov. 5 Purchases (180 units x $10) $1,800.00 Accounts Payable $1,800.00 Nov.10 Accounts Receivables (430 units x $18) $7,740.00 Sales Revenue $7,740.00 Cost of Goods Sold (340 x 9 ) + (90 x 10) $3,960.00 Inventory $3,960.00 Nov.15 Purchases (430 units x $9.50) $4,085.00 Accounts Payable $4,085.00 Nov.21 Accounts Receivables (470 units x $19) $8,930.00 Sales Revenue $8,930.00 Cost of Goods Sold (380 x 9.50 ) + (90 x 10) $4,510.00 Inventory $4,510.00 Nov. 30 Purchases (400 units x $9.80) $3,920.00 Accounts Payable $3,920.00 d) Sales Revenue $16,670.00 Less: Cost of Good Sold -$8,470.00 Gross Profit $8,200.00

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