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Katie s Dress Supply ( KDS ) , a garment wholesaler, experienced the following events in Year 1 , its first year of operations. KDS
Katies Dress Supply KDS a garment wholesaler, experienced the following events in Year its first year of operations. KDS uses the perpetual inventory method.
KDS was started when it issued common stock for $ cash.
KDS purchased land for cash for $
KDS purchased on account inventory with a list price of $ Payment terms were n KDS records inventory transactions at the gross amount.
The transportation terms for the merchandise delivered in event No were FOB shipping point. KDS paid the transportation cost of $ in cash.
An inspection revealed that merchandise with a purchase price of $ from event No was defective. KDS returned this merchandise to its supplier for credit.
a KDS recognizes the discount for $ of the inventory purchased in event No
b KDS paid this portion of accounts payable.
a KDS sold inventory to various retail store customers on account. KDS offers customers payment terms of n The list price for the sales was $
b Recognized the cost of the inventory sold was $
a Customers returned some goods KDS had sold in event No The goods had been sold for a list price of $ The items are not defective and can be sold as is
b These goods had a cost of $
KDS paid in cash transportation cost of $ for goods delivered to customers FOB destination.
a Receivables recorded at a gross price of $ were paid within the day discount period. KDS recognized the sales discount.
b KDS collected cash from these customers.
KDS paid $ in cash for other operating expenses.
KDS sold the land from transaction for $
KDS paid dividends of $ for the year.
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