Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 June 2021, a retailer and installer of car stereo systems, commenced trading. By 1 July 2021, the business had 20 Stereo system on

On 1 June 2021, a retailer and installer of car stereo systems, commenced trading. By 1 July 2021, the business had 20 Stereo system on hand that was purchased for $462 each, including GST. The following transactions occurred during the second two months of operations:
Record the information on a perpetual inventory record using each of the following methods:
i. FIFO - how to record the returned systems?
ii. moving average
iii. LIFO.
image text in transcribed
JULY 4 Purchased 12 stereo systems at cost of $495 (GST Inclusive) each 7 Sold and installed 8 stereo systems for $1045 (GST Inclusive) each. 12 Returned 2 defective systems purchased on 4 July. 18 Purchased 15 stereo systems at a cost of $500.50 (GST Inclusive) each. 25 Purchased 6 stereo systems at a cost of $555.50 (GST Inclusive) each. AUG 5 Sold and installed 14 systems for $1056 (GST Inclusive) each. 9 Sold and installed 16 stereo systems for $1089 (GST Inclusive) each. 15 One of the customers from the August 9 sales, was not happy with 3 of their stereo system and had returned them. The items were not defective. 21 Purchased 15 stereo systems at for $616 (GST Inclusive) each. 24 During one of the installations, one of the technicians identified three of the stereo systems was faulty. These systems were from the purchase on 21 August. The manager contacted the Company, returned the faulty systems, and received a credit to the business's account. 27 Sold and installed 18 stereo systems for $1100 (GST Inclusive) each. 30 Purchased 35 stereo systems at a special price of $467.5 (GST Inclusive) each. Other expenses for the month of July and August 2021 totalled to $12,320 (GST Inclusive)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Accounting Vol 1

Authors: Dr S. Kr. Paul, Prof. Chandrani Paul

1st Edition

164725146X, 9781647251468

More Books

Students also viewed these Accounting questions

Question

Name three healthy eating habits and three healthy exercise habits.

Answered: 1 week ago