70.2K

Verified Solution

Link Copied!

At the beginning of November, Yoshi Incorporated's inventory consists of $55$ units with a cost per unit of $$96.$ The following Assuming that Yoshi Incorporated uses a FIFO perpetual inventory system to maintain its internal inventory records, record the

transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

Record purchase of $80$ units of inventory on account from Toad Incorporated

for $$100$ per unit, terms $\frac{1}{10},\frac{n}{30}.$

Note: Enter debits before credits. Journal entry worksheet

$1$

Record any necessary adjusting entry for lower of cost and net realizable value.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$November$],[30]],,,],[,,,],[,,,],[,,,],[,,,]]$ Prepare the top section of the multiple$-$step income statement through gross profit for the month of November after the

adjusting entry for lower of cost and net realizable value.

transactions occur during the month of November.

November $2$ Purchase $80$ units of inventory on account from Toad Incorporated for $$100$ per unit, terms $1/10,$ n$/30.$

November $3$ Pay cash for freight charges related to the November $2$ purchase, $$240.$

November $9$ Return $20$ defective units from the November $2$ purchase and receive credit.

November $11$ Pay Toad Incorporated in full.

November $16$ Sell $100$ units of inventory to customers on account, $$13,500.($Hint: The cost of units sold from the

November $2$ purchase includes $$100$ unit cost plus $$4$ per unit for freight less $$1$ per unit for the purchase

discount, or $$103$ per unit.$)$

November $20$ Receive full payment from customers related to the sale on November $16.$

November $21$ Purchase $65$ units of inventory from Toad Incorporated for $$106$ per unit, terms $3/10,$ n$/30.$

November $24$ Sell $75$ units of inventory to customers for cash, $$8,600.($Note: For calculating the cost of inventory sold,

ignore the possible purchase discount on November $20.)$

Required:

Assuming that Yoshi Incorporated uses a FIFO perpetual inventory system to maintain its internal inventory records, record the

transactions.

Suppose by the end of November that the remaining inventory is estimated to have a net realizable value per unit of $$82,$ record

any necessary adjustment for the lower of cost and net realizable value.

Prepare the top section of the multiple$-$step income statement through gross profit for the month of November after the adjusting

entry for lower of cost and net realizable value.

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer