1. Crystal Crockery has provided you with the following information about the transactions occurring in January. Assume Crystal Crockery uses the periodic inventory system.

Jan 2	Crystal Crockery received a shipment of gift mugs for resale from Dishes Inc. on account. The amount on the invoice is $9,700 and the stated terms are: 3/15, n/45.
Jan 2	Crystal Crockery paid $220 cash for shipping charges.
Jan 5	The manager of Crystal Crockery performed a check on the shipped mugs and found that goods worth $390 were defective. The defective goods were returned to the supplier.
Jan 13	Crystal Crockery paid the remaining invoice balance and, in doing so, took advantage of the early payment discount.
Jan 20	Crystal Crockery sold the goods costing $9,031 to Clay Distributor for $11,600 on account.
Jan 22	Clay Distributor found 7% of items to be defective and returned these to Crystal Crockery.
Jan 28	Clay Distributor's invoice showed terms 2/10, n/60. Clay Distributor paid the remaining invoice balance after taking advantage of the early settlement discount.

Required Prepare the journal entries to record the above transactions. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. For transactions that have 2 debits or 2 credits, enter the accounts in alphabetical order.

Date	Account Title and Explanation	Debit	Credit
Jan 2	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Recorded purchase of inventory
Jan 2	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Record Freight-in charges
Jan 5	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Returned defective goods to supplier
Jan 13	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Paid remaining invoice balance less discount
Jan 20	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Goods sold on account
Jan 22	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Defective goods returned by the customer
Jan 28	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldFreight-InInventoryNotes PayablePrepaid RentProperty, Plant & EquipmentPurchase DiscountsPurchase Returns & AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns & AllowancesSales RevenueUnearned RevenueUtilities Expense		Answer
	Recorded invoice paid by customer less discount

a) Games Limited received a shipment of plastic sheets on August 3rd. The value of the plastic was $9,300, plus $110 of freight charges. Prepare the journal entry to record the receipt of goods by Games Limited, assuming the payment would be made in September. Assume they use the periodic inventory system.

Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole dollar. For transactions that have 2 debits or 2 credits, enter the accounts in alphabetical order.

Date	Account Title and Explanation	DR	CR
Aug 3	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer

b) Several of the plastic sheets delivered to Games Limited were in the wrong colour. After some negotiation, the manager agreed to keep the products with a 14% discount. Prepare the entry on August 10th to record the purchase allowance.

Date	Account Title and Explanation	DR	CR
Aug 10	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer

c) Journalize the transaction for Games Limited when the payment is made on September 3.

Date	Account Title and Explanation	DR	CR
Sep 3	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense	Answer
	AnswerAccounts PayableAccounts ReceivableAccumulated DepreciationAdvertising ExpenseBank LoanCashCommon SharesCost of Goods SoldFreight InInsurance ExpenseInterest ExpenseInterest PayableInterest RevenueInventoryPrepaid InsurancePrepaid RentProperty, Plant & EquipmentPurchase Returns and AllowancesPurchasesRent ExpenseSalaries ExpenseSales DiscountSales Returns and AllowancesSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense		Answer

A Lending Hand Corporation sells medical support products and records purchases at net amounts. They account for their inventory using the periodic system. In 2013, the following information was available from the companys inventory records for ankle support products.

Do not enter dollar signs or commas in the input boxes. Round the weighted average cost per unit to 2 decimal places.

	Units	Unit Cost
January 1, 2013 (beginning inventory)	1,900	$23.00
Purchases
January 5, 2013	2,320	$23.00
January 25, 2013	2,230	$22.00
February 16, 2013	1,330	$19.00
March 15, 2013	1,330	$16.00

A physical count was taken on March 31, 2013 and showed 2,000 units on hand. a) Prepare schedules to calculate the ending inventory at March 31, 2013 under the FIFO valuation method.

	Units	Unit Cost	Total Cost
March 15, 2013	Answer	$Answer	$Answer
February 16, 2013	Answer	$Answer	$Answer
March 31, 2013, Inventory	Answer		$Answer

b) Prepare a schedule showing each purchase to calculate the ending inventory at March 31, 2013 under the weighted average valuation method.

	Units	Unit Cost	Total Cost
January 1, 2013 (beginning inventory)	Answer	$Answer	$Answer
January 5, 2013	Answer	$Answer	$Answer
January 25, 2013	Answer	$Answer	$Answer
February 16, 2013	Answer	$Answer	$Answer
March 15, 2013	Answer	$Answer	$Answer
Total	Answer		$Answer
Weighted Average Cost		$Answer
March 31, 2013, Inventory	Answer	$Answer	$Answer