1-

Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

	Merchandise		Freight Paid by Seller		Freight Terms		Credit for Refunds and Allowances
a.	$120,800		$1,300			FOB shipping point, 1/10, n/30	$20,100
b.	147,700		2,100			FOB destination, 2/10, n/30	11,400

2-

Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

	Merchandise		Freight Paid by Seller		Freight Terms		Credit for Refunds and Allowances
a.	$58,600		$1,300			FOB destination, 1/10, n/30	$6,500
b.	73,100		600			FOB shipping point, 2/10, n/30	3,900

3-

Stanley Flooring Company's perpetual inventory records indicate that $1,129,000 of merchandise should be on hand on December 31, 20Y1. The physical inventory indicates that $1,109,300 of merchandise is actually on hand.

Journalize the adjusting entry for the inventory shrinkage for Stanley Flooring Company for the year ended December 31, 20Y1. Assume that the inventory shrinkage is a normal amount. If an amount box does not require an entry, leave it blank.

Dec. 31	Accounts PayableAccounts ReceivableCost of Merchandise SoldMerchandise InventoryPurchases Returns and Allowances	- Select -	- Select -
	Accounts PayableCashCost of Merchandise SoldMerchandise InventoryPurchases Discounts	- Select -	- Select -

4-

Corona Company's perpetual inventory records indicate that $195,120 of merchandise should be on hand on October 30, 20Y1. The physical inventory indicates that $173,660 of merchandise is actually on hand.

Journalize the adjusting entry for the inventory shrinkage for Corona Company for the year ended October 30, 20Y1. Assume that the inventory shrinkage is a normal amount. If an amount box does not require an entry, leave it blank.

Oct. 30	Accounts PayableAccounts ReceivableCost of Merchandise SoldMerchandise InventoryPurchases Returns and Allowances	- Select -	- Select -
	Accounts PayableCashCost of Merchandise SoldMerchandise InventoryPurchases Discounts	- Select -	- Select -