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3 Question 3 Crane Wholesalers uses a perpetual inventory system. Mar. Stellar Stores purchases 58,500 of merchandise for resale from Crane Wholesalers terms 2/10, 1/30,

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3 Question 3 Crane Wholesalers uses a perpetual inventory system. Mar. Stellar Stores purchases 58,500 of merchandise for resale from Crane Wholesalers terms 2/10, 1/30, FOB shipping point. 2 The correct company pays $175 for the shipping charges Stellar returns 51,000 of the merchandise purchased on March 1 because it was the wrong colour. Crane gives Stellar a $1,000 credit or its account. 21 Stellar Stores purchases an additional $13,500 of merchandise for resale from Crane Wholesalers terms 2/10, 1/30, FOB destination 22 The correct company pays $190 for freight charges. 23 Stellar returns $300 of the merchandise purchased on March 21 because it was damaged. Crane gives Stellar a $300 credit on its account. Stellar paid Crane the amount owing for the merchandise purchased on March 1. Stellar paid Crane the amount owing for the merchandise purchased on March 21. Additional information: Mar. 1 Crane's cost of the merchandise sold to Stellar was $4,000, 3 Crane's cost of the merchandise returned by Stellar was 5430. As the merchandise was not damaged, it was returned to Crane's inventory, 21 Crane's cost of the additional merchandise sold to Stellar Stores was $5,900. 23 Crane's cost of the merchandise returned by Stellar was $190. As the merchandise was damaged, it was put in the recycling bin. ly 30 Question 1 Monty Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory system. An alphabetical list of its account balance August 31, 2017 follows: All accounts have normal balances, Accounts payable $30,500 Interest revenue $920 Accounts receivable 19,000 Merchandise inventory 59,000 Accumulated depreciation-equipment 26,560 Notes payable 31,490 Notes receivable 32,000 Cash 13,500 Rent expense 16,000 Cost of goods sold 565,500 Sales 705,000 Depreciation expense 6,640 Sales discounts 4,200 Equipment 66,400 Sales returns and allowances 14,400 Freight out 4,700 Supplies expense 6,100 Insurance expense 3,000 Unearned revenue 6,100 2,300 Interest expense 72,700 V. Monty, capital 230 Interest receivable 60,300 V. Monty, drawings sy Additional information 1. All adjustments have been recorded and posted except for the inventory adjustment. According to the inventory count, the company has 57.000 of me hand. 2. Last year Monty Warehouse Store had a gross profit margin of 20% and a profit margin of 11%. 3 Question 3 Crane Wholesalers uses a perpetual inventory system. Mar. Stellar Stores purchases 58,500 of merchandise for resale from Crane Wholesalers terms 2/10, 1/30, FOB shipping point. 2 The correct company pays $175 for the shipping charges Stellar returns 51,000 of the merchandise purchased on March 1 because it was the wrong colour. Crane gives Stellar a $1,000 credit or its account. 21 Stellar Stores purchases an additional $13,500 of merchandise for resale from Crane Wholesalers terms 2/10, 1/30, FOB destination 22 The correct company pays $190 for freight charges. 23 Stellar returns $300 of the merchandise purchased on March 21 because it was damaged. Crane gives Stellar a $300 credit on its account. Stellar paid Crane the amount owing for the merchandise purchased on March 1. Stellar paid Crane the amount owing for the merchandise purchased on March 21. Additional information: Mar. 1 Crane's cost of the merchandise sold to Stellar was $4,000, 3 Crane's cost of the merchandise returned by Stellar was 5430. As the merchandise was not damaged, it was returned to Crane's inventory, 21 Crane's cost of the additional merchandise sold to Stellar Stores was $5,900. 23 Crane's cost of the merchandise returned by Stellar was $190. As the merchandise was damaged, it was put in the recycling bin. ly 30 Question 1 Monty Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory system. An alphabetical list of its account balance August 31, 2017 follows: All accounts have normal balances, Accounts payable $30,500 Interest revenue $920 Accounts receivable 19,000 Merchandise inventory 59,000 Accumulated depreciation-equipment 26,560 Notes payable 31,490 Notes receivable 32,000 Cash 13,500 Rent expense 16,000 Cost of goods sold 565,500 Sales 705,000 Depreciation expense 6,640 Sales discounts 4,200 Equipment 66,400 Sales returns and allowances 14,400 Freight out 4,700 Supplies expense 6,100 Insurance expense 3,000 Unearned revenue 6,100 2,300 Interest expense 72,700 V. Monty, capital 230 Interest receivable 60,300 V. Monty, drawings sy Additional information 1. All adjustments have been recorded and posted except for the inventory adjustment. According to the inventory count, the company has 57.000 of me hand. 2. Last year Monty Warehouse Store had a gross profit margin of 20% and a profit margin of 11%

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