Accounting for Purchases and Sales of Goods: Periodic System (continued): [20128007030520) Accounting for Purchases and Sales of Goods: Periodic System: 20128007030520 Merle Company (the firm counted inventory on hand on December 30, Ycar 1, to allow the employees to have the day off on December 31. According to this physical count, there was $330 of inventory on hand at that time. I use smaller values to make the facts and your answers easier to write. The firm uses the periodic system to keep its inventory. In examining the inventory records of the firm you have discovered the following items to be considered in making any needed adjustments to the physical count and/or the accounting records for Years 1 and 2. Required: What adjustments to the accounting records of the firm for Year 1 and Year 2 seem appropriate for each of the four items above? Show proper journal entries for each of the items or a statement telling that no adjusting journal entry is necessary Year 1 a. Year 2 The firm sold S30 of goods to a customer. Merle mailed the invoice for $30 on January 3, Year 2. Merle recorded the sale in the books on the same day. These goods had been shipped FOB shipping point on December 28, Ycar 1. The goods did arrive at the customer's receiving dock on January 3, Year 2. These goods had cost Merle $18. Year 1 Year 2 b. Merle sold goods to a customer at a price of $20. The sales terms were FOB destination and the goods were shipped late in the afternoon on December 31, Year 1. The goods were delivered to the customer four days later. The goods had cost Merle $11. Mcrle mailed the invoice to the customer on January 2, Year 2 and recorded the sale in the books on that date. Year 1 Year 2 Year 1 The firm bought goods from a supplier at a price of S40. The terms of the chase were FOB shipping point. The goods were shipped on December 29, Year 1. The firm had received the invoice from the supplier and recorded the purchase in the books for Year 1 on January 3, Year 2. The goods arrived at the Merle's rccciving dock on January 5, Ycar 2. Year 2 What adjustments to the physical count taken at the end of Year 1, if any, do you think are appropriate given the information above? Make it apparent whether you think the physical count should be increased, decreased or left 'as is' based on the information contained above. Also, indicate the amount of the change you propose, if any, for each of the four items above. d. Merle purchased goods from another supplier on December 28, Year 1 at a cost of $28. These goods were purchased on FOB destination terms and the goods arrived at the firm on December 31, Year 1 in the aftemoon. The goods had been shipped on December 29, Year 1. The invoice arrived on January 3, Year 2, and was recorded in the books for Year 2. B. C. D $ $ $ Mwh 030520 Accounting for Purchases and Sales of Goods: Periodic System (continued): [20128007030520) Accounting for Purchases and Sales of Goods: Periodic System: 20128007030520 Merle Company (the firm counted inventory on hand on December 30, Ycar 1, to allow the employees to have the day off on December 31. According to this physical count, there was $330 of inventory on hand at that time. I use smaller values to make the facts and your answers easier to write. The firm uses the periodic system to keep its inventory. In examining the inventory records of the firm you have discovered the following items to be considered in making any needed adjustments to the physical count and/or the accounting records for Years 1 and 2. Required: What adjustments to the accounting records of the firm for Year 1 and Year 2 seem appropriate for each of the four items above? Show proper journal entries for each of the items or a statement telling that no adjusting journal entry is necessary Year 1 a. Year 2 The firm sold S30 of goods to a customer. Merle mailed the invoice for $30 on January 3, Year 2. Merle recorded the sale in the books on the same day. These goods had been shipped FOB shipping point on December 28, Ycar 1. The goods did arrive at the customer's receiving dock on January 3, Year 2. These goods had cost Merle $18. Year 1 Year 2 b. Merle sold goods to a customer at a price of $20. The sales terms were FOB destination and the goods were shipped late in the afternoon on December 31, Year 1. The goods were delivered to the customer four days later. The goods had cost Merle $11. Mcrle mailed the invoice to the customer on January 2, Year 2 and recorded the sale in the books on that date. Year 1 Year 2 Year 1 The firm bought goods from a supplier at a price of S40. The terms of the chase were FOB shipping point. The goods were shipped on December 29, Year 1. The firm had received the invoice from the supplier and recorded the purchase in the books for Year 1 on January 3, Year 2. The goods arrived at the Merle's rccciving dock on January 5, Ycar 2. Year 2 What adjustments to the physical count taken at the end of Year 1, if any, do you think are appropriate given the information above? Make it apparent whether you think the physical count should be increased, decreased or left 'as is' based on the information contained above. Also, indicate the amount of the change you propose, if any, for each of the four items above. d. Merle purchased goods from another supplier on December 28, Year 1 at a cost of $28. These goods were purchased on FOB destination terms and the goods arrived at the firm on December 31, Year 1 in the aftemoon. The goods had been shipped on December 29, Year 1. The invoice arrived on January 3, Year 2, and was recorded in the books for Year 2. B. C. D $ $ $ Mwh 030520