M3 Homework i 5 10 points FAZ Skipped eBook Print References Mc Graw Hill 1 F1 Q A N MMcGraw Hill Connect Thompson Plumbing Inc. is a wholesaler of plumbing accessories. Thompson Plumbing began operations in September of the current year and engaged in the following transactions during September and October of this year. Thompson Plumbing uses a perpetual inventory system. Sept.03 Purchased $244,000 of plumbing accessories, terms n/30. Sept.15 Sold $184,000 of plumbing accessories, terms n/60. The cost of the accessories sold is $122,000. Sept.28 Purchased $364,000 of plumbing accessories, terms n/45. Oct.03 Settled the $244,000 purchase of September 3. Oct.15 Sold $460,000 of plumbing accessories, terms n/60. The cost of the accessories sold is $304,000. Oct.27 Purchased $544,000 of plumbing accessories, terms n/30. Required: a. Compute the gross profit (loss) on Thompson Plumbing's transactions during September and October. b. Compute the gross profit (loss) on Thompson Plumbing's transactions during September and October if a cash-basis accounting system was used. (Hint: In a cash-basis system, only transactions that result in cash being received or paid are recorded.) d. Assume that the fair value of Thompson Plumbing's inventory at October 31 is $910,000. A potential lender asks Thompson Plumbing to prepare a fair-value-based balance sheet. Prepare the journal entry to reflect inventory at fair value. (Hint: Increase the Inventory account by the difference between fair value and book value with the offset to an account titled Revaluation of Inventory to Market Value.) Required A Required B Required D 2 Complete this question by entering your answers in the tabs below. F2 W S Compute the gross profit (loss) on Thompson Plumbing's transactions during September and October. (Enter all losses with a minus sign) Gross profit (loss) G X 1 option command #3 H 80 F3 E D $ 4 C a F4 R MacBook Air 5 of 9 ++ F6 Y H 7 F7 N U Next > * 8 J DII F8 Question 5 M3 Homework - Connect I M 9 K H F9 O L J F10 Help P I command option Save & 13 { [ CI ? 1