3. Spring Company, a traditional department store that has just started to run an online...
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3. Spring Company, a traditional department store that has just started to run an online website in an effort to remain competitive in the retail industry, purchased a delivery truck at a cash price of $25,000. Related expenditures included sales taxes applicable at 10% of the purchase price, painting and lettering of $500, and a 3-year accident insurance policy of $2,000 a. Please compute the cost of the delivery truck. 4 III. Complete the following tasks. (40%) 1. Fast Computers has the following transactions in July related to the purchase and sale merchandise inventory. The company's Merchandise Inventory account at month-end showed a balance of $43,000, while the physical count of inventory came up with $42,500. July 1 Purchase of $20,500 worth of computers on account, terms of 2/10, n/30. 3. Return of $4,000 of the computers to the vendor, Click Inc. 9 Payment made on account. 12 Sold computers on account for $8,000 to a customer, H. Lester, terms of 3/15, n/30. The cost of the computers is $4,800. Requirements (10%): a. Journalize the purchase and sales transactions for Fast Computers. b. Journalize the adjusting entry needed to account for the inventory shrinkage. Accounts and Explanation Debit Credit Date July 1
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