Answered step by step
Verified Expert Solution
Question
1 Approved Answer
URGENT HELP!! Dundas Wholesale Inc. had the following inventory transactions for one month. The company uses a perpetual system and FIFO. All purchases and sales
URGENT HELP!!
Dundas Wholesale Inc. had the following inventory transactions for one month. The company uses a perpetual system and FIFO. All purchases and sales are on account. REQUIRED: Use an inventory cost chart and an accounting chart to analyze the above transactions, and then answer the questions below. ENTRY RULES: Where you are asked to enter a percentage, enter ONLY the digits. For example, 78 percent must be entered as 78. Do not use a % sign or a decimal point. All such answers will be integers. No rounding is required. How should the July 5 transaction be recorded? (2 marks) A. increase Purchases, increase Accounts Payable B. increase Inventory, increase Cost of Goods Sold C. increase Inventory, increase Accounts Payable D. increase Purchases, decrease Cash E. increase Purchases, increase Cost of Goods Sold F. increase Inventory, decrease Cash Enter the letter that corresponds to your choice. (A B C D E F) How will the July 7 purchase return be recorded? ( 2 marks) A. decrease Purchases, decrease Accounts Payable B. decrease Inventory, decrease Accounts Payable C. increase Purchase Returns, decrease Accounts Payable D. decrease Purchases, increase Cash E. decrease Inventory, decrease Cost of Goods Sold F. increase Purchase Returns, increase Cash G. decrease Inventory, increase Cash H. increase Purchase Returns, decrease Cost of Goods Sold Enter the letter that corresponds to your choice. (A B C D E F G H) A What is the value of the inventory after the July 7 transaction? A How will the July 10 sale be recorded? (4 marks) A. increase Sales, increase Cost of Goods Sold, increase Inventory, increase Accounts Receivable B. increase Sales, decrease Cost of Goods Sold, increase Inventory, decrease Accounts Receivable C. decrease Sales, increase Cost of Goods Sold, increase Inventory, decrease Accounts Receivable D. increase Service Revenue, increase Cost of Goods Sold, decrease Inventory, increase Cash E. increase Sales, increase Cost of Goods Sold, decrease Inventory, increase Cash F. increase Sales, decrease Cost of Goods Sold, increase Inventory, decrease Accounts Payable G. increase Sales, increase Cost of Goods Sold, decrease Inventory, increase Accounts Receivable H. increase Sales, increase Cost of Goods Sold, increase Inventory, increase Accounts Payable Enter the letter that corresponds to your choice. (A B C D E F G H)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