Chapter 6 Assignment

Problem 3: P6-28A (AVG)

Background:

Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. Fit Gym uses the perpetual inventory system, accounts for its merchandise using the weighted-average inventory costing method, and estimates returns at the end of each month. Fit Gym's January transactions related to merchandise inventory are included in the Transactions section below.

Assignment:

1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction.2) Click the Reports tab and review the results of recording these transactions on the General Ledger.3) Click Submit Work when complete.

Transactions:

01/05/2018 Purchased 156 crates of vitamins for $64 each on account. Terms n/30, FOB destination.

01/13/2018 Sold 180 crates of vitamins on account for $100 each. Terms 1/10, n/30. FOB destination. (Determine Cost of Goods Sold and record two separate entries)

01/14/2018 Paid for the vitamins purchased on January 5.

01/15/2018 Paid a $40 freight bill related to the January 13 sale.

01/18/2018 Purchased 114 crates of vitamins on account, $75 each. Terms n/eom, FOB destination.

01/20/2018 Received payment for the sale of vitamins on January 13, less the discount.

01/26/2018 Sold 150 crates of vitamins for $116 each, on account. Terms 1/10, n/30. FOB shipping point. (Determine Cost of Goods Sold and record two separate entries)

01/31/2018 Paid for the vitamins purchased on January 18.

01/31/2018 Fit Gym estimates that customers will return a total of $200 of vitamins with a cost of $75 related to January sales. (Record two separate entries)

Debit Credit

01/01/2018 Merchandise Inventory 9984

Accounts Payable 9984

01/13/2018 Accounts Receivable 17820

Sales Revenue 17820

01/14/2018 Accounts Payable 9984

Cash 9984

01/15/2018 Cost of Goods Sold ?

Merchandise Inventory ?

Then I'm lost on what to put? Maybe Delivery Expense

Accounts Payable?

You can only choose out of the following.

10100	Cash	Current Asset
10400	Accounts Receivable	Current Asset
10600	Merchandise Inventory	Current Asset
10650	Estimated Returns Inventory	Current Asset
11250	Equipment	Property, Plant, and Equipment
11300	Accumulated Depreciation - Equipment	Contra-Asset
20100	Accounts Payable	Current Liability
20150	Refunds Payable	Current Liability
20250	Salaries Payable	Current Liability
20500	Unearned Revenue	Current Liability
30500	Common Stock	Stockholders' Equity
30700	Retained Earnings	Stockholders' Equity
40100	Sales Revenue	Sales Revenue
40250	Service Revenue	Service Revenue
50100	Cost of Goods Sold	Cost of Goods Sold
50350	Salaries Expense	Operating Expense
50500	Advertising Expense	Operating Expense
50600	Delivery Expense	Operating Expense

I need to get these answers for the

Problem 4: P6-28A (FIFO)

same entries

Problem 5: P6-28A (LIFO)

same entries