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Assume that you have a company. And the management estimates that 5% of sales will be...

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Accounting

Assume that you have a company. And the management estimatesthat 5% of sales will be uncollectible.

Give any amount of sales and prepare the journal entry usingthe percent of sales method.

Q3 A company that uses a perpetual inventory system made thefollowing cash purchases and sales. There was no beginninginventory.


January 1:

Purchased 40 units at SAR10 per unit

February 5:

Purchased 40 units at SAR 12 per unit

March 16:

Sold 50 Units for SAR 15 per unit


A.Prepare general journal entries to record the March 16 saleusing the

1. FIFO inventory valuation method.
2. LIFO inventory valuation method.

what is the gross margin for each method?

Answer & Explanation Solved by verified expert
4.1 Ratings (621 Votes)
Journal Entries 1 Journal Entries under FIFO Inventory Valuation Method Date Account Titles and Explanation Debit Credit Jan 1 Merchandise Inventory 40 units SAR 10 per unit SAR 400 Accounts Payable SAR 400 To record the purchase of merchandise on account Fedb 5 Merchandise    See Answer
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