ded in inventory was $10,438 of inventory held by Craig on uded in inventory is
ID: 2553071 • Letter: D
Question
ded in inventory was $10,438 of inventory held by Craig on uded in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped on becem after i a was $10,520, and Kemp received the merchandise on January 5 counted. The invoice was prepared and recorded as a sale for $18.900 on December 31. The cost of this mer- from inventory was a carton labeled "Please accept for credit." This carton contains merchandise costing t from Jackel Industries. which had been sold to a custo returned merchandise seemed da mer for $2,600. No entry had been made maged; Craig will honor the return. to the books to reflect the return, but none of the $1,500 Instructions Determine the proper inventory balance for Craig Company at December 31, 2017. Prepare any correcting entries to adjust inventory to its proper amount at December 31,2017. Assume the books ha not been closed. ) (Determining Merchandise Amounts-Periodie) Two or more items are omitted in each of the following tak E8-6 (LO2) tions of in statement data. Fill in the amounts that are missing. 2016 11,000 20,000 20172018 Sales revenue Sales returns and allowances Net sales Beginning inventory Ending inventory Purchases Purchase returns and allowances $290,000 ? $410,000 13,000 347,000 32,000 298,000 260,000 8,000 5,000 8,000 233,000 46,000 10,000 12,000 293,000 97,000 Freight-in 9,000 Cost of goods sold Gross profit on sales 91,000Explanation / Answer
Description
2016
2017
2018
Sales Revenue
290000
360000
410000
Sales returns and allowances
11000
13000
20000
Net Sales
279000
347000
390000
Beginning Inventory
20000
32000
37000
Ending Inventory
32000
37000
44000
Purchases
242000
260000
298000
Purchase returns and allowances
5000
8000
10000
Freight-in
8000
9000
12000
Cost of Goods Sold
233000
256000
293000
Gross Profit on Sales
46000
91000
97000
Net Sales For 2016
Sales Revenue- Sales Return And Allownces
i.e., 290000-11000 = 279000
Ending Inventory 2016
Next year Beginning Inventory is = This year Ending Inventory
i.e., 32000/-
Purchases 2016
Net Purchase= (Sales-Sales return +Closing Stock) – (Opening stock+Freight+Gross Profit)
+ Purchase return you will get purchase figure
i.e., (290000-11000+32000)-(20000+8000+46000)
=237000+5000=242000
Sales 2017
Net sales +Sales Return
i.e, 347000+13000=360000
Ending Inventory=
(purchases-purchase return+opening stock+freight in+ gross profit)- (net sales)
i.e(384000-347000)
=37000/-
Cost of goods sold= Net sales –Gross profit
347000-91000
=256000/-
Closing Inventory 2017= Beginning Inventory 2018
i.e =37000/-
Net sales = Cost of goods sold + Gross Profit
=293000+97000
=390000
Then sales return = 20000 (410000-390000)
Ending Inventory=
(purchases-purchase return+opening stock+freight in+ gross profit)- (net sales)
(434000-390000)
=44000/-
Description
2016
2017
2018
Sales Revenue
290000
360000
410000
Sales returns and allowances
11000
13000
20000
Net Sales
279000
347000
390000
Beginning Inventory
20000
32000
37000
Ending Inventory
32000
37000
44000
Purchases
242000
260000
298000
Purchase returns and allowances
5000
8000
10000
Freight-in
8000
9000
12000
Cost of Goods Sold
233000
256000
293000
Gross Profit on Sales
46000
91000
97000
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