Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Flint Ltd. distributes olive oil to grocery stores and restaurants. At the end of October, Flint's inventory consists of 160 one-litre bottles of olive oil
Flint Ltd. distributes olive oil to grocery stores and restaurants. At the end of October, Flint's inventory consists of 160 one-litre bottles of olive oil purchased at $12 per litre. Flint uses a perpetual inventory system. Return rates in food industry are moderate, with Flint experiencing a 6% return rate historically. During the month of November, the following merchandise transactions occurred: November 2 Sold 100 one-litre bottles of olive oil on account to Eatalia Grocery for $30 each, with an average cost of $12. 4 Purchased 230 bottles of olive oil for $10 each from Ambrosia Oleum, terms n/30. 8 Purchased 230 bottles on account for $11 each from EVOO, terms n/30. 10 Granted Eatalia a $150 credit for five bottles of olive oil returned to Flint. The bottles were restored to inventory. 13 Received a $110 credit for 10 bottles of olive oil returned to EVOO. 14 Sold 30 bottles of olive oil on account to Mezes Restaurant for $40 each, with an average cost of $11, terms n/30. 16 Issued a $120 credit memorandum to Eatalia Grocery for the return of four bottles of olive oil. The bottles were not returned to inventory as it was past the best before date. 18 Received payment in full from Eatalia Grocery. 24 Paid EVOO in full. 26 Received payment in full from Mezes. 30 Sold 55 bottles to La Bodega Grocery for $30 each, with an average cost of $11, terms n/30. Record the November transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the (To record cost of inventory returned) (To record sales) (To record cost of goods sold) (To record sales return) (To record cost of goods sold) (To record sales)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started