Date Reed Corp Debit Crec To illustrate the different inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three different prices Accounts Receivable-Brady 6 520 X Salesv Units Cost per Unit Total C 1 Purchase 15 Purchase 20 Purchase 35 35 35 105 5 420 665 770 $1,855 $ 12 Cost of Goods Sols 520 X 19 Merchandise Inventon available for sale No entry requirew Russell purchased a total of 105 units, which cost a total of $1,855, On May 31st a customer purchased 35 units, Russell's selling price was $26 per unit. No entry required Merchandise Invent 1,040 X To illustrate the different inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three different prices. 1,0 Accounts Payable Brady Units Cost per Unit Total s12 18 23 10 Sales Returns and Allowanovs 1,040X ay 1 Purchase ay 15 Purchase ay 20 Purchase $240 360 460 1,060 20 20 Accounts Receivable-Brady available for sale 60 Merchandise Tnventon 1,040X Cost of Goods Sold Russell purchased a total of 60 units, which cost a total of $1,060. On May 31st a customer purchased 20 units. Russell's selling price was $26 per unit ay 14 Cash Reed Corp. is a medium-sized manufacturer of electronic components that supplies Brady Co. with many component parts. Brady Co. also supplies Reed wit some of the finished products it develops. Hence, both companies purchase from and sell merchandise to each other. Both companies are located in Oregon which has no sales tax, and both companies use a perpetual inventory system. Therefore, sales tax does not apply to any of these transactions and you should record merchandise transactions using the perpetual inventory method. 1,040 X 1,0 Accounts Receivable-Brady G6 Analyze each transaction (described by rolling over the date) from the perspective of each party. In the first journal space, record each transaction as it affects Reed Corp., on the appropriate day. Then record the same transaction in the bottom journal space as it affects Brady Co. Y15 Accounts Payable-Brady G Cashv If no entry is required, select "No entry required" and leave the amount boxes blank. If compound entries, for those boxes in which no entry is required, leave the box blank. Merchandise Inventon Brady Co. Merchandise Invento Date Debit Credit Accounts Payable-Reed Cory Cash May 3 Merchandise Inventon 10 Accounts Payable-Reed Corn Cashv Merchandise Inventon Accounts Receivable Reed Com May 14 Accounts Payable-Reed Cory Sales Cash Cost of Goods Solv Cashv Sales Discount Accounts Receivable- Reed Con Merchandise Invento Delivery Expenss Date Reed Corp Debit Crec To illustrate the different inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three different prices Accounts Receivable-Brady 6 520 X Salesv Units Cost per Unit Total C 1 Purchase 15 Purchase 20 Purchase 35 35 35 105 5 420 665 770 $1,855 $ 12 Cost of Goods Sols 520 X 19 Merchandise Inventon available for sale No entry requirew Russell purchased a total of 105 units, which cost a total of $1,855, On May 31st a customer purchased 35 units, Russell's selling price was $26 per unit. No entry required Merchandise Invent 1,040 X To illustrate the different inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three different prices. 1,0 Accounts Payable Brady Units Cost per Unit Total s12 18 23 10 Sales Returns and Allowanovs 1,040X ay 1 Purchase ay 15 Purchase ay 20 Purchase $240 360 460 1,060 20 20 Accounts Receivable-Brady available for sale 60 Merchandise Tnventon 1,040X Cost of Goods Sold Russell purchased a total of 60 units, which cost a total of $1,060. On May 31st a customer purchased 20 units. Russell's selling price was $26 per unit ay 14 Cash Reed Corp. is a medium-sized manufacturer of electronic components that supplies Brady Co. with many component parts. Brady Co. also supplies Reed wit some of the finished products it develops. Hence, both companies purchase from and sell merchandise to each other. Both companies are located in Oregon which has no sales tax, and both companies use a perpetual inventory system. Therefore, sales tax does not apply to any of these transactions and you should record merchandise transactions using the perpetual inventory method. 1,040 X 1,0 Accounts Receivable-Brady G6 Analyze each transaction (described by rolling over the date) from the perspective of each party. In the first journal space, record each transaction as it affects Reed Corp., on the appropriate day. Then record the same transaction in the bottom journal space as it affects Brady Co. Y15 Accounts Payable-Brady G Cashv If no entry is required, select "No entry required" and leave the amount boxes blank. If compound entries, for those boxes in which no entry is required, leave the box blank. Merchandise Inventon Brady Co. Merchandise Invento Date Debit Credit Accounts Payable-Reed Cory Cash May 3 Merchandise Inventon 10 Accounts Payable-Reed Corn Cashv Merchandise Inventon Accounts Receivable Reed Com May 14 Accounts Payable-Reed Cory Sales Cash Cost of Goods Solv Cashv Sales Discount Accounts Receivable- Reed Con Merchandise Invento Delivery Expenss