172 QS 4-7 Recording purchases and discounts missed P1 QS 4-8 Recording sales, returns. and discounts taken P2 QS 4-9 Sales transactions P2 QS 4-10 ffects of sales transactions an income statement P2 5 4-11 ccounting for shrinkage- erpetual system Chapter 4 Reporting and Analyzing Merchandising Operations Prepare journal entries to record each of the following transactions. The company records purchases w the gross method and a perpetual inventory system. Sep. 15 Purchased merchandise with an invoice price of $35,000 and credit terms of 2/5,0/15 29 Paid supplier the amount owed on the September 15 purchase. Prepare journal entries to record each of the following sales transactions of a merchandising company T company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April i. The cost of merchandise is $1,800. 4 The customer in the April I sale returned $300 of merchandise for full cred The merchand which had cost $180, is returned to inventory. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice and April 8. Cos the merchandise is $700. 11 Received payment for the amount due from the April I sale less the return April 4 Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold merchandise for $1,500, with credit terms n/30, invoice dated October 1. The cost of te merchandise is $900, 6 The customer in the October 1 sale returned $150 of merchandise for full credit. The mercha dise, which had cost $90, is returned to inventory. 9 Sold merchandise for $700 cash. Cost of the merchandise is $450. 30 Received payment for the amount due from the October 1 sale less the return on October 6 Analyze each transaction in QS 4-9 by indicating its effects on the components of the income statement- specifically, identify the accounts and amounts (including + or-) for each transaction. Nix 'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that he normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 37,8001 115,300 7,000 160.200 Sales returns and allowances Cost of goods sold. $ 6,500 105,000 4,700 Depreciation expense Salaries expense Miscellaneous expenses 10,300 32,500 5,000 54-12 osing entries P3 4-13 ntifying type of income cement 4-14 puting missing wunts using income ament relations A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900. Prepare the entry to record any inventory shrinkage. Refer to QS 4-11 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 4-11. Indicate whether each statement describes a multiple-step income statement or a single-step income statement. 1. Commonly reports detailed computations of net sales and other costs and expenses. 2. Statement limited to two main categories (revenues and expenses). 3. Reports gross profit on a separate line. 4. Separates income from operations from the other revenues and gains. Compute the missing amounts in the separate (partial) income statements A, B, and C. Sales Sales discounts $7 A B C 1.500 4000 $20,000 500 $90.000 2,000