, Inc., purchased inventory costing $ 150000 and sold 80% of the goods for $ 195

Question

, Inc., purchased inventory costing $ 150000 and sold 80% of the goods for $ 195000. All purchases and sales were on account. Samantha later collected 10% of the accounts receivable.

Samantha, Inc., purchased inventory costing $150,000 and sold 80% of the goods for $195,000. All purchases and sales were on account. Samantha later collected 10% of the accounts receivable. 1. Journalize these transactions for Samantha, which uses the perpetual inventory system. 2. For these transactions, show what Samantha will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement. 1. Journalize these transactions for Samantha, which uses the perpetual inventory system Journalize the purchase of inventory. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Accounts Debit

Explanation / Answer

1) Journal entry :

2) Calculate balances :

Inventory = 150000*20% = 30000

Revenue = 195000

Cost of goods sold = 120000

Gross profit = (195000-120000)= 75000

Date accounts & explanation debit credit Merchandise inventory 150000 Account payable 150000 (To record purchase) Account receivable 195000 Sales revenue 195000 (TO record sales) Cost of goods sold (150000*80%) 120000 Merchandise inventory 120000 (TO record cost of goods sold) Cash (195000*10%) 19500 Account receivable 19500 (To record amount collected)

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