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Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $20,300 and credit terms of 3/10, n/60. The merchandise had cost

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Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $20,300 and credit terms of 3/10, n/60. The merchandise had cost Tuscon $13,845. Taos paid within the discount period. Assume that both buyer and seller use a perpetual inventory system. 1(a) Prepare entries that the buyer should record for the purchase. (Omit the "$" sign in your response.) General Journal Debit Credit (Click to select) (Click to select) 1(b)Prepare entries that the buyer should record for the cash payment. (Omit the "S" sign in your response.) General Journal Debit Credit (Click to select) (Click to select) (Click to select) 2(a) Prepare entries that the seller should record for the sale. (Omit the "$" sign in your response.) General Journal Debit Credit (Click to select) (Click to select) (Click to select) (Click to select) 2(b)Prepare entries that the seller should record for the cash collection. (Omit the "S" sign in your response.) General Journal Debit Credit (Click to select) (Click to select) (Click to select) 3. Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 11% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy. (Use 365 days a year. Round your intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Buyer's net savings [The following information applies to the questions displayed below.] Park Company reported the following March purchases and sales data for its only product. Units sold at Retail 110 units @ $15.80 Date Activities Units Acquired at Cost Mar. 1 Beginning Inventory 190 units @ $ 7.80 = $ 1,482 Mar. 10 Sales Mar. 20 Purchase 260 units @ $6.80 = 1,768 Mar. 25 Sales Mar. 30 Purchase 130 units @ $5.80 = 754 185 units @ $15.80 Totals 580 units $ 4,004 295 units Park uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 130 are from the March 30 purchase, 80 are from the March 20 purchase, and 75 are from beginning inventory value: 10.00 points 1. Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. (Omit the "S" sign in your response.) Ending inventory Cost of goods sold Hints References 3. value: 10.00 points 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average cost. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round per unit costs to three decimal places. Round your answers to nearest dollar amount. Omit the "$" sign in your response.) Cost of Goods Sold Inventory Balance A $ A Date 3/1 3/10 3/20 3/25 3/30 A A A Total $ 4. value: 10.00 points 3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO. (Omit the "$" sign in your response.) Cost of Goods Sold Inventory Balance $ Date 3/1 3/10 3/20 3/25 3/30 Total $ Park Company reported the following March purchases and sales data for its only product. Units Sold at Retail Units Acquired at Cost 240 units @ $8.80 = $ 2,112 135 units @$16.80 Date Activities Mar. 1 Beginning inventory Mar. 10 Sales Mar. 20 Purchase Mar. 25 Sales Mar. 30 Purchase 310 units @ $7.80 = 2,418 235 units @$16.80 180 units @ $6.80 = 1,224 Totals 730 units $5,754 370 units Park uses a perpetual inventory system. For specific identification, ending inventory consists of 360 units, where 180 are from the March 30 purchase, 80 are from the March 20 purchase, and 100 are from beginning inventory. 1. Complete comparative income statements for the month of January for Park Company for the four inventory methods. Assume expenses are $2,500, and that the applicable income tax rate is 30%. (Round per unit costs to three decimal places. Round your answers to the nearest dollar amounts. Input all amounts as positive values. Omit the "S" sign in your response.) PARK COMPANY Income Statements For Month Ended March 31 Specific Weighted Identification Average cost FIFO Sales Cost of goods sold Gross profit Expenses Profit before taxes Profit tax expense Net profit 2. Which method yields the highest net profit? Specific identification O FIFO Weighted average cost 3. If costs were rising instead of falling, which method would yield the highest net profit? Weighted average cost Specific identification O FIFO

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