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College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at
College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 8,400 Accounts Receivable 1.760 Inventory 400 Prepaid Rent 400 Equipment 690 Accumulated Depreciation 90 Accounts Payable 1,310 Salaries and Mages Payable 300 Income Taxes Payable 0 Common Stock 5.700 Retained Earnings 3,000 Sales Revenue 14,020 Cost of Goods Sold 8,720 Rent Expense 880 1,700 90 O 1,300 Salaries and Wages Expense Depreciation Expense Income Tax Expense office Expenses The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The Inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below a. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60.
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