PROBLEMS AND CRITICAL THINKING EXERCISES 17. Britt Jewelers had the following transactions in April. Prepare journal entries for these transactions assuming Britt Jewelers uses a perpetual inventory system. Apr. 2 Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping point. Britt paid the freight bill amounting to $2,000. 4 Britt returned $2,500 of the merchandise billed on April 2 because it was defective. Britt sold $8,000 of merchandise on account, terms 3/15 n/30. The cost of the merchandise sold was $5,500. 10 Britt paid the invoice dated April 2, less the return and the discount. 15 A customer returned $2,500 of merchandise sold on April 5. The cost of the returned merchandise was $1,450. 19 Britt received payment on the remaining amount due from the A sale of April:Ndess thesireturn and the discount. 5 :-**** OL !!! Page 4 13. Given the following data, what is the gross profit if cost of goods sold is determined using the FIFO method? Sales revenue Beginning inventory 260 units at $12 per unit Purchases 210 units at $13 per unit a. $2,540 b. $1,460 $1,400 d. cannot be determined because the number of units in ending inventory is not given 14. If ending inventory for the current accounting period is understated by $4,700: a. beginning inventory for the next period will be overstated by $4,700 b. net income for the current period will be overstated by $4,700 c. owner's equity at the end of the next ccounting period will be understated by $4,700 d. cost of goods sold for the current period wil1 be overstated by $4,700 15. Net sales revenue is $550,000, purchases are $380,000, ending inventory is $225,000, and gross profit is $270,000. What is cost of goods sold? a. $ 155,000 b. $170,000 c. $280,000 d. none of the above 16. Bathworks Company wants to estimate its ending inventory based on the following data: beginning inventory of $70,000, net sales revenue of $195,000, purchases of $140,000, and a normal gross profit percent of 40%, Ending inventory is equal to: a. $78,000 b. $117,000 c. $93,000 d. $132,000 020 piu 15 Yetu