Exercise 8-9 Date Account Titles and Explanation Debit Credit Jan. 31 SHOW LIST
ID: 2581394 • Letter: E
Question
Exercise 8-9
Date
Account Titles and Explanation
Debit
Credit
Jan. 31
SHOW LIST OF ACCOUNTS
LINK TO TEXT
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
(To record the sale)
(To record the cost of inventory)
(To record the sale)
(To record the cost of inventory)
(To record the sale)
(To record the cost of inventory)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Exercise 8-9
Swifty Company sells one product. Presented below is information for January for Swifty Company.Jan. 1 Inventory 118 units at $5 each 4 Sale 93 units at $8 each 11 Purchase 165 units at $6 each 13 Sale 136 units at $9 each 20 Purchase 163 units at $7 each 27 Sale 104 units at $11 each
Swifty uses the FIFO cost flow assumption. All purchases and sales are on account.
Explanation / Answer
Ans. 1 Date Accounts titles and Explanation Debit Credit 4-Jan Accounts receivables 744 Sales (93 * 8) 744 11-Jan Purchase (165 * 6) 990 Accounts Payable 990 13-Jan Accounts receivables 1224 Sales (136 * 9) 1224 20-Jan Purchase (163 * 7) 1141 Accounts Payable 1141 27-Jan Accounts receivables 1144 Sales (104 * 11) 1144 31-Jan Ending Inventory (113 * 7) 791 Cost of Goods sold (590 + 2131 - 791) 1930 Purchase (1141 + 990) 2131 Beginning Inventory (118 * 5) 590 *Cost of Goods Sold = Beginning inventory + purchase - ending inventory Ans.2 Sales (744 + 1224 + 1144) 3112 Less: Cost of Good Sold -1930 Gross Profit 1182 Ans. 3 Date Accounts titles and Explanation Debit Credit 4-Jan Accounts receivables 744 Sales (93 * 8) 744 Cost of Goods Sold (93 * 5) 465 Inventory 465 11-Jan Purchase (165 * 6) 990 Accounts Payable 990 13-Jan Accounts receivables 1224 Sales (136 * 9) 1224 Cost of Goods sold 791 Inventory (25 * 5) + (111 * 6) 791 20-Jan Inventory 1141 Accounts Payable (163 * 7) 1141 27-Jan Accounts receivables 1144 Sales (104 * 11) 1144 Cost of Goods sold 674 Inventory (54 * 6) + (50 * 7) 674 Ans.4 Sales (744 + 1224 + 1144) 3112 Less: Cost of Goods Sold (465+791 + 674) -1930 Gross profit 1182
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