TheDawbry Lamp Company $($DLC$),$ owned by

Jemma Dawbry$,$ is a wholesale company that purchases lamps from the manufacturer and resells them to retail stores. The company has three inventory$$ items: desk$$ lamps, table$$ lamps, and floor lamps.

DLC

DLC uses a perpetual inventory system

long dash

$$FIFO method.

DLC

DLC owns land with a$$ building, which is separated into two$$ parts: office space and warehouse space. All expenses associated with the office are categorized as Administrative Expenses. All expenses associated with the$$ warehouse, which is used for the shipping and receiving functions of the$$ company, are categorized as Selling Expenses. In addition to the land and$$ building,

DLC

DLC also owns office furniture and equipment and warehouse fixtures. The company uses one accumulated depreciation account for all the depreciable assets.

Trial Balance

Dawbry Lamp Company

Trial Balance

September $30,2025$

Balance

Account

Debit

Credit

Cash

$

$536,000$

Accounts Receivable

$0$

Merchandise Inventory

$127,900$

Office Supplies

$180$

Warehouse Supplies

$240$

Land

$32,000$

Building

$740,000$

Office Furniture and Equipment

$140,000$

Warehouse Fixtures

$380,000$

Accumulated Depreciation

$

$252,000$

Accounts Payable

$0$

Dawbry, Capital

$353,500$

Dawbry, Withdrawals

$0$

Sales Revenue

$2,889,820$

Sales Returns and Allowances

$123,000$

Sales Discounts

$36,000$

Cost of Goods Sold

$906,000$

Salaries Expense$$Selling

$331,000$

Utilities Expense$$Selling

$35,000$

Supplies Expense$$Selling

$0$

Depreciation Expense$$Selling

$0$

Salaries Expense$$Administrative

$86,000$

Utilities Expense$$Administrative

$22,000$

Supplies Expense$$Administrative

$0$

Depreciation Expense$$Administrative

$0$

Total

$

$3,495,320$

$

$3,495,320$

Merchandise Inventory as of

September

September

$30$

$30$ consists of the following$$ lamps:

Item

Quantity

Unit Cost

Total Cost

Desk Lamp

$3,400$

$

$5$

$

$17,000$

Table Lamp

$2,400$

$16$

$38,400$

Floor Lamp

$2,500$

$29$

$72,500$

Total

$

$127,900$

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PrintDone

Oct. $1$

Purchased lamps on account from Village Lights, terms n$/30,$ FOB destination:

$4,000$ desk lamps at $$11$ each

$6,000$ table lamps at $$17$ each

$1,500$ floor lamps at $$29$ each

Oct. $12$

Sold lamps on account to Moonbeam Home Furnishings, terms $3/10,$ n$/30$:

$4,200$ table lamps at $$41$ each

Oct. $15$

Sold lamps on account to Kennesaw Office Supply, terms $1/10,$ n$/30$:

$1,500$ desk lamps at $$16$ each

Oct. $20$

Received a check from Moonbeam Home Furnishings for full amount owed on Oct. $12$ sale.

Oct. $23$

Received a check from Kennesaw Office Supply for full amount owed on Oct. $15$ sale.

Oct. $28$

Sold lamps on account to Channel Home Stores, terms $2/10,$ n$/30$:

$1,800$ table lamps at $$41$ each

$1,100$ floor lamps at $$60$ each

Oct. $30$

Paid amount due to Village Lights from Oct. $1$ purchase.

Oct. $31$

Paid salaries, $$44,000(75\%$ selling, $25\%$ administrative$).$

Oct. $31$

Paid utilities, $$2,000(60\%$ selling, $40\%$ administrative$).$

Nov. $1$

Sold lamps on account to Kennesaw Office Supply, terms $3/10,$ n$/30$:

$2,000$ desk lamps at $$16$ each

Nov. $5$

Purchased lamps on account from Village Lights, terms n$/30,$ FOB destination:

$4,000$ desk lamps at $$13$ each

$8,500$ table lamps at $$19$ each

$3,000$ floor lamps at $$30$ each

Nov. $5$

Received a check from Channel Home Stores for full amount owed on Oct. $28$ sale.

Nov. $8$

Received a check from Kennesaw Office Supply for full amount owed on Nov. $1$ sale.

Nov. $10$

Purchased and paid for supplies: $$220$ for the office; $$475$ for the warehouse.

Nov. $15$

Sold lamps on account to Taylor Office Supply, n$/30$:

$2,300$ desk lamps at $$16$ each

Nov. $18$

Sold lamps on account to Plaza Discount Stores, terms $1/10,$ n$/30$:

$1,700$ table lamps at $$41$ each

$2,100$ floor lamps at $$60$ each

Nov. $28$

Received a check from Plaza Discount Stores for full amount owed on Nov. $18$ sale.

Nov. $30$

Paid salaries, $$44,000(75\%$ selling, $25\%$ administrative$).$

Nov. $30$

Paid utilities, $$2,260(60\%$ selling, $40\%$ administrative$).$

Dec. $5$

Paid amount due to Village Lights from Nov. $5$ purchase.

Dec. $15$

Received a check from Taylor Office Supply for full amount owed on Nov. $15$ sale.

Dec. $15$

Dawbry withdrew $$30,000$ from the business.

Dec. $27$

Sold lamps on account to Moonbeam Home Furnishings, terms $1/10,$ n$/30$:

$4,100$ desk lamps at $$16$ each

$4,300$ table lamps at $$41$ each

Dec. $31$

Paid salaries, $$44,000(75\%$ selling, $25\%$ administrative$).$

Dec. $31$

Paid utilities, $$3,500(60\%$ selling, $40\%$ administrative$).$

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$1.$

Open general ledger$$ T$-$accounts and enter opening balances as of

September

September

$30$

$30,$

$2025$

$2025.$

$2.$

Open inventory records for the three inventory items and enter opening balances as of

September

September

$30$

$30,$

$2025$

$2025.$ Complete the inventory records using the following$$ transactions:

Oct.

Oct. $1,12,15,28$;

Nov.

Nov. $1,5,15$