Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The pet store experience the following events for the year one accounting period: 1.Acquired $50,000 cash from the issue of common stock 2.Purchased $71,000 of
The pet store experience the following events for the year one accounting period:
1.Acquired $50,000 cash from the issue of common stock
2.Purchased $71,000 of inventory on account
3. Received goods purchased an event 2 FOB shipping point; Freight cost of $1280 paid in cash
4. Sold inventory on account that cost $32,500 for $60,000
5.Freight cost on the good sold in event for was $1140. The goods were shipped FOB destination. Cash was paid for the freight cost.
6.Customer in event 4 returned $5700 worth of goods that had cost of $2900
7.Collected $49,200 cash from the accounts receivable
8.Paid $53,700 cash on account payable
9.Paid $3470 for advertising expense
10.Paid $3840 cash for insurance expense
1.
2.Which of these events effect period (selling and administrative) Costs? Which results in product costs? If neither, label the transaction NA.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started