ACCI-FINAL REVISION SPRING 2018-19 Journal Entries for Merchandising Operations On March 1, Tina Cycle Store had an inventory of 100 bicycles at a cost of $300 each. During the month of March, the following transactions occurred. March. 4 5 6 13 Purchased bicycles at a cost of $4000 from Wim Cycle Company, terms 2/10, n/30. Paid freight of &$120 cash Sold bicycles to Team UAE for $4800, terms 2/10, n/30, cost of $3,000 7 Received credit from Wim Cycle Company for the return of defective bicycles for $600. Issued a credit memo to Team UAE for the return of defective bicycles for $900, cost of $300 Paid Wim Cycle Company full net amount. 14 Inventory Cost Flow Method 1/1 50 units@ $1.00- $50 6/2 50 units@ $1.10 = $55 13/9 150 units@ $1.20 = $180 20/10 100 units @ $1.30 = $130 25/11 150 units @ $1.40 $210 Units Purchased: 500 units $625 Question 2: 5000 Ending Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory at October 31 is given below: October 1 Beginning inventory 400 units @ 10.00 = 4,000 8 16 Purchase Purchase 800 units @ 10.40 = 600 units @ 10.80= 8,320 6,480 24 Purchase 200 units @ 11.60 = 2,320 Total units and cost 2,000 units 21.120