Pip's Puppy Company uses the Perpetual Inventory Method when accounting for their INVENTORY Transactions....When making sales...they always sell their INVENTORY on Account (Receivable) and offer their customers the following Sales Discount opportunities: 3/ 10, Net 30.

 

On Nov 1^st, Pip has a Beginning Balance in INVENTORY of $12,350...and during November completed the following transactions:

1. Pip purchases $14,750 of Inventory from Noelle's Napkin Company on account, terms 2/10, net 30 FOB Destination.
2. Pip pays UPS $425 for the delivery of the goods from Noelle.
3. Pip makes a Sale of Inventory to Keira's Kite Company for $10,000 terms FOB Destination and the inventory cost $6,200.
4. Pip pays $350 for the shipment of goods to Keira.
5. Pip returns $3,850 of Inventory back to Noelle.
6. Pip sells Inventory to Glenny's Glass Company for $18,500, cost $8,900. Terms FOB Shipping Point.
7. Keira returns $5,000 of the Inventory she purchased prior in transaction # 3, cost $2,100.
8. Pip pays Noelle for the Inventory purchased in transaction #1 within the discount period.
9. Keira pays Pip within the discount period.
10. Glenny returns Inventory purchased in transaction # 6 of $6,200 Cost $3,200.

REQUIRED:

1. Record the Journal entries for the Month of November for Pip
2. What is the ending Balance in Inventory?
3. What is the ending balance in Cost of Goods Sold?
4. What is Net Sales?

1. Pip's Puppy Store has a balance in his Cash Ledger Account of $42,500 at July 31^st 2023 Pip receives his Bank Statement which shows an ending balance of $46,000.

Pip compares his records with the bank statement and discovers the following reconciling items:

1. Deposits-in-Transit $2,250

1. Bank Collects a $5,000 Note Receivable from Muffin for Pip, Muffin also pays $500 in interest and the Bank deducts a $150 Collection fee. The Monies were added to PIP's ACCOUNT as a CREDIT Memo for $5,350.

1. Pip discovers they made an ERROR of $675.... Sales he made on July 28^th of $4,750 were INCORRECTLY recorded in the Journal and Ledger for $4,075. The Bank recorded the correct amount.

1. Outstanding Checks $895

1. The BANK Charged Pip a $50 monthly management fee on his account They deducted the $50 as a DEBIT MEMO

1. Pip's customer, gave him a check for $3,500 that was returned NSF (Non-Sufficient Funds)..The CHECK was deducted from Pip's Accounts as a DEBIT MEMO...

1. The bank made an ERROR....They mistakenly add a deposit of $1,800 made by Pop's Poppy store into Pip's Account

1. Pip MADE an ERROR of $580....Pip wrote out a check for $1,580 in payment to a vendor, but deducted $2,160 from his checkbook and his Cash Ledger.

Required:

Prepare a Bank Reconciliation for July 31^st, 2023

Record the Adjusting entries in Pip's Journal

What is the ending Balance in Pip's Cash Account?