Target Store uses the periodic inventory system and had the following transactions during the...
Question:
Target Store uses the periodic inventory system and had the following transactions during the month of May:
- May 3 - Sold merchandise to a customer on credit for $600, terms 2/10, n/30. The cost of merchandise sold was $350.
- May 4 - Sold merchandise to a customer for cash of $425. The cost of the merchandise was $250.
- May 6 - Sold merchandise to a customer on credit for $1,300, terms 2/10, n/30. The cost of the merchandise sold was $750.
- May 8 - The customer from May 3 returned merchandise with a selling price of $100. The cost of the merchandise retuned was $55.
- May 15 - The customer from May 6 paid the full amount due, less any appropriate discounts earned.
- May 31 - The customer from May 3 paid the full amount due, less any appropriate discounts earned.
Required:
Prepare and explain the required journal entries that Target Store must make to record these transactions.
Inventory:
Inventory represents items purchased for resale or items in the process of being manufactured for sale. Items remain on the balance sheet until sold. The amount of inventory held varies from company to company. All transactions are recorded via journal entries.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer
In a periodic system of inventory, inventory is updated occasionally or periodically to ensure accuracy. In inventories of large quantities,...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Periodic Inventory System: Definition, Advantages & Examples
from
Chapter 1 / Lesson 14
14K
Explore the periodic inventory system. Learn the definition of the periodic inventory system and understand its advantages. See periodic inventory system examples.
Related to this Question
- Q1: Maia's Bike Shop uses the periodic inventory system and had the following transactions during the month of May: May 3 Sold merchandise to a customer on credit for $600, terms 2/10, n/30. The cost
- Robbie's Bike Shop uses the perpetual inventory system and had the following transactions during the month of May: May 3 Sold merchandise to a customer on credit for $56,000, terms 2/15, n/30. The cost of the merchandise sold was $29,400 May 6 Sold merch
- A record of transactions for the month of May was as follows: Purchases Sales May 1 (balance) 400@ $5.20 May 3 200@ $7.00 4 1,300 @ $5.10 6 1,000 @ 7.00 8 800 @ $5.30 12 900 @ 7.50 14 700 @ $5.40 18 400 @ 7.50 22 1,200 @ $5.50 25 1,400 @ 8.00 29 5OO@ $
- A record of transactions for the month of May was as follows: Purchases May 1 (balance) 400 @ $4.20 4 1,300 @ $4.10 8 800 @ $4.30 14 700 @ $4.40 22 1,200 @ $4.50 29 500 @ $4.55 Sales May 3 200
- A record of transactions for the month of May was as follows: Purchases Sales May 1 (balance) 400 @ $5.20 May 3 200 @ $7.00 4 1,300 @ $5.10 6 1,000 @ $7.00 8 800 @ $5.30 12 900 @ $7.50 14 700 @ $5.40
- The After Five Boutique took in $748,200 in sales during May. They started the month with an inventory worth $419,000 and spent $154,800 on new purchases during the month. The gross margin on sales was 40%. Using the gross profit method, estimate the cost
- Copple Hardware Store completed the following merchandise transactions in the month of May, Copple using a periodic inventory system. May 1 Purchase 300 PCs on account $1,200 each from Sameer Trading terms 2/10, n/30 2 Received credit note of $2,400 for P
- Journalize the transactions for the month of July for Ready-Set-Go using a perpetual inventory system. Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 t
- On September 12, Vender Company, Inc. sold merchandise in the amount of $3,950 to Jepson Company, credit terms of 2/10, n/30. The cost of the Items sold is $2,725. Vander uses the periodic inventory system. On September 14, Jepson returns some of the merc
- Company A uses the gross profit method to estimate inventory for monthly reporting purposes. Below is the information for the month of May. Inventory, May 1 $165,600 Purchases (gross) 517,400 Freight-In 30,700 Sales revenue 963,200 Sales returns 67,100 P
- A retail store sold $1,000,000 of merchandise inventory in cash during the month of December. The sales were subject to 0.06% sales tax and due to be paid to the state on January 20. Journalize the transaction to record sales revenue for the month of Dec
- Ceres Computer Sales uses the perpetual inventory system and had the following transactions during the month of December: Dec 1 - Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sol
- Month sales for May and June are $200,000 and $210,000, respectively. Cost of Goods Sold (CGS) 65%. Variable Cost (VC) 20%. Monthly Fixed Costs (FC) $12,000. Depreciation included in FC $4,000. Ending inventory 40% of next month's CGS. Beginning Inventory
- A local merchandiser purchases inventory that it subsequently sells to customers. During the month of May, the following costs (in dollars) were incurred. Cost of inventory purchased and sold $20,000 Selling expenses $4,000 Admin. Expenses $5,000 What was
- Horne Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 102 units were sold. DateExplanationUnitsUnit CostTotal Cost May 1Inventory41$12$492 15Purcha
- The following transactions occurred for the month of May. Date Units Cost Total Sales Price 1-May Beginning Balance 85 12 $1,020 2-May Purchase 65 16 $1,040 3-May Purchase 70 14 $980 10-May Sale 115 $35 15-May Purchase 30 19 $570 17-May Sale 35 $35 30
- Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing $1,200. During the month of July, the following merchandising tra
- On May 1, 2013, Sparky received $337,800 for the sale of merchandise to a customer. The contract specified that Sparky would deliver its product in equal monthly quantities over 60 months. When Sparky recorded the sale, the bookkeeper credited a nominal a
- Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $160,000 Purchases (gross) $640,000 Freight-in $30,000 Sales $1,000,000 Sales ret
- Ceres Computer Sales uses the perpetual inventory system and had the following transactions during the month of December: Dec 1 Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold
- Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' led Common Stock of $8,000. May 1 Purchased merchandise on account fro
- A record of transactions for the month of May was as follows: __Purchases__ |May 1 (balance)|400 @$5.20 |4|1,300 @$5.10 |8|800 @$5.30 |14|700 @$5.40 |22|1,200 @$5.50 |29|500 @$5.55 __Sales__ |May 3|200 @$7.00 |6|1,000 @$7.00 |12|900 @$7.50 |18|400 @$7.50
- Transactions for the month of June were: Sales June 1 (balance) 1,000 @ $3.00 June 2 500 @ $5.50 3 1,000 @ 4.00 6 1,000 @ 7.50 Assuming that periodic inventory records are kept in units only, cost of goods sold on an average cost basis, rounded to the ne
- Tidbit Co. has a sales budget for next month of $800,000. Cost of goods sold is expected to be 25 percent of sales. All goods are purchased in the month used and paid for in the month following purchase. The beginning inventory of merchandise is $16,000,
- Sales budget for next month of $600,000. COGS is expected to be 30 % of sales. All goods are purchased in the month used and paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $60,000 is
- Monsoon Company has a beginning balance in inventory of 400 units at @ $4.20 per unit. A record of transactions for the month of May was as follows: Purchases Sales May # Cost May # Price 4 1,300 $4.10 3 200 $7.00 8 800 $4.30 6 1,000 $7.00 14 700 $4.
- Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $4,500 and Common Stock of $4,500. \\ May1: Purchased merchandise on account from Gray's Wholesale S
- Boone Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Boone showed Cash of $5,000 and the Owner's Capital of $5,000. May 1 Purchased merchandise on account from Adewale's Wholes
- Osario Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases. Date Number of Units Unit Price May 7 198 $10 July 28 119 13 On June 1, Rosario sold
- The inventory data for an item for the month of May are as follows: May 1 Inventory 20 units at $50 5 Sold 15 units 10 Purchased 30 units at $55 20 Sold 30 units 29 Purchased 29 units at $60 What is
- A company begins business in June and uses the periodic method. Its June merchandise purchases are $195,000 on account, FOB shipping point. Merchandise that cost $3,000 is returned for credit. Goods that the company sells for $11,000 and that cost $7,000
- On March 2, Kwang Company sold $956,000 of merchandise to Sensat Company, terms 3/10, n/30. The cost of the merchandise sold was $552,000. Journalize the transaction.
- Rains Company is a furniture retailer. On January 14, 2014, Rains purchased merchandise inventory at a cost of $48,000. Credit terms were 2/10, n/30. The inventory was sold on account for $80,000 on January 21, 2014. Credit terms were 1/10, and n/30. The
- On May 1, 2013, Sparky received $337,800 for the sales of merchandise to a customer. The contract specified that Sparky would deliver its product in equal monthly quantities over 60 months. When Sparky recorded the sale, the bookkeeper credited a nominal
- P5-2A. Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,000 and Common Stock of $5,000.
- Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $4,550 and Common Stock of $4,550. May 1 Pur
- Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $9,600 and Common Stock of $9,600. May 1. Purcha
- Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters? ledger showed Cash of $8,000 and Common Stock of $8,000. May 1Purchased
- Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $8,000 and Common Stock of $8,000.
- A record of transactions for the month of May was as follows: Purchases Sales May 1(balance) 400 @ $4.20 May 3 200 @ $7.00 4 1,300 @ $4.10 6 1,000 @ 7.00 8 800 @ $4.30 12 900 @ 7.50 14 700 @ $4.40 18 400 @ 7.50 22 1,200 @ $4.50 25 1,400 @ 8.00 29 500 @ $4
- Sunland Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, and n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,250 (in
- The records of Stellar's Boutique report the following data for the month of April. Sales revenue $103,800 Purchases (at cost) $43,800 Sales returns 1,900 Purchases (at sales price) 92,200 Markups 9,300 Purchase returns (at cost) 1,900 Markup cancellatio
- Potter Plumbing has a beginning balance in inventory of 400 units at @ $4.20 per unit. A record of transactions for the month of May was as follows: Purchases Sales May # Cost May # Sales Price 4 1
- A company made the following merchandise purchases and sales during the month of May. May 1 Purchased 380 units at $15 each May 5 Purchased 270 units at $17 each May 10 Sold 400 units at $50 each May
- Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water's ledger showed Cash of $11,291 and Common Stock of $11,291. May 1 Purchased merchandise on account from Hauke Wholesale Supply f
- Supposed a company has the following data: Accounts Receivable, May 31st: (.20 x May sales 360, 000)=72,000. Monthly forecast sales: June, $437,000 July, $441,000 August $502,000. Sales consist of 80% cash and 20% credit. All credit accounts are collected
- Fashion Jewelers uses the perpetual inventory system. On April 2, Fashion sold goods with a cost of $8,000 for $10,000 with terms of 33/15, n/30. On April 4, the customer reported damaged goods and Fashion granted a $2,000 sales allowance. On April 10, Fa
- Water's Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water's ledger showed Cash of $8,000 and Common Stock of $8,000. May 1 Purchase
- Pargo Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $475,000 for May. Cost of goods sold is expected to be 60% of sales. The company's desired ending inventory is 20% of the following month's cost of
- In May, overhead was overapplied by $490. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied. Job X32Z Beginning balance $7,500
- Company has a sales budget for next month of $450,000. Cost of goods sold is expected to be 50 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of me
- Walgreen Co., the largest drug store chain in the United States, reported inventories of $7,213 million and $6,852 million in its February 28, 2014, and August 31, 2013, balance sheets, respectively. Cost of goods sold for the six months ended February 28
- Rains Company is a furniture retailer. On January 14, 2014, Rains purchased merchandise inventory at a cost of $48,000. Credit terms were 2/10, n/30. The inventory was sold on account for $80,000 on January 21, 2014. Credit terms were 1/10, n/30. The acco
- In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $508,600, July $614,600 2. Cost of goods sold is expected to be 75% of sales
- In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $507,300, July $608,800. 2. Cost of goods sold is expected to be 75% of sales.
- Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $414,600 for April and $517,900 for May. The cost of goods sold is expected to be 61% of sales. The company's desired ending inventory is 22% of the following month's cost
- Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $450,000 for April and $510,000 for May. Cost of goods sold is expected to be 65% of sales. The company's desired ending inventory is 21% of the following month's cost of
- Month Budgeted Sales January $120,000 February $108,000 March $132,000 April $144,000 The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory lev
- Leaverton's forecast of sales is as follows: July, $60,000; August, $90,000; September, $130,000. Sales are normally 80 percent cash and 20 percent credit in any month. Credit sales are collected in full in the following month. Merchandise cost averages 6
- COGS are 70% of Sales. You collect 60% of sales in the month of sale and the remaining 40% in the month following the sale. You purchase 30% of your COGS in the month of sale and 70% in the month prio
- COGS are 80% of Sales. You collect 40% of sales in the month of sale and the remaining 60% in the month following the sale. You purchase 50% of your COGS in the month of sale and 50% in the month prio
- . A company made the following merchandise purchases and sales during the month of May: May 1- purchased 380 units at $15 each ; May 5 - purchased 270 units at $17 each ; May 10 - sold 400 units at $5
- The trial balance of D. Savage Company at the end of its fiscal year, August 31, 2015, includes these accounts: Inventory $17,200, Purchases $149,000, Sales Revenue $190,000, Freight-In $5,000, Sales
- The trial balance of D. Savage Company at the end of its fiscal year, August 31, 2014, includes these accounts: Inventory $18,080; Purchases $156,330; Sales Revenue $192,100; Freight-In $4,870; Sales
- Some of the transactions of Wildhorse Company during August are listed below. Wildhorse uses the periodic inventory method. August 10 Purchased merchandise on account, $11,900, terms 2/10, n/30. 13 R
- Bradley's Appliance Store had the following transactions during the month of May 2016. May 5 Sold a refrigerator to Mary Wilson that had a retail price of $620. Sales tax of $31 was also charged May 6 Sold a freezer to Sam Lee. Issued sales slip for $870
- Transactions Units Unit Cost Beginning inventory, Jan 1 1,800 $50 Transactions during the year: a. Purchase, Jan 30 2,500 62 b. Sale, Mar 14 ($100 each) (1,450) c. Purchase, May 1 1,200 80 d. Sale, Au
- Blossom Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $160,700 Purchases (gross) 595,100 Freight-in 28,600 Sales revenue 1,028,100 Sales re
- Martin & Sons is a small wholesale distributor of consumer goods. The company generates a gross margin of 27% of sales. Sales are 35% for cash and 65% on credit. Credit sales are collected in the month following sale, and accounts receivable on June 30, 2
- Colaw Stores accepts both its own and national credit cards. During the year, the following selected summary of transactions occurred. Journalize the transactions for Colaw Stores. January 15: Made Colaw credit card sales totaling $31,100. (There were no
- Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Water's ledger showed Cash of $8,872 and Common Stock of 58,872. May 1 Purchased merchandise on account from Hauke Wholesale Supply for
- A firm had purchases of $16,200, freight charges of $300, and purchases returns and allowances of $1,100 during one month. Its net delivered cost of purchases was: a. $14,800 b. $17,600 c. $16,200 d. $15,400
- Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, Aug. 1 $300,000 $575,000 Transactions during August: Purchases (net) 2,149,000 3,375,000
- Suppose Heat Miser Air Conditioner Company engaged in the following transactions during June of the current year: Jun 3 Purchased inventory on credit terms of 1/10 net EOM (end of the month), $1,600. 9 Returned 40% of the inventory purchased on June 3. It
- The following data has been provided by Lee Company regarding its inventory purchases and sales throughout the year. Transaction Units Cost per Unit Jan. 1 Balance 175 $86 Mar. 14 Sale 55 May 23 Purchase 135 90 Aug. 21 Sale 100 Nov. 5 Purchase 175 91 Nov.
- Bulk Wholesalers took in $377,800 in sales during July. They started the month with an inventory worth $173,800 and spent $299,900 on new purchases during the month. The gross margin on sales was 76%. Using the gross profit method, estimate the cost value
- Alpha Company uses the periodic inventory system for the purchase of merchandise. Discount terms are 2/10, n30. The following events occurred during the month of Jan.: Date Activity a. Jan. 3 Purchas
- In May 2014, the budget committee of Grand Stores assembled the following data in preparation for budgeted merchandise purchases for the month of June. 1. Expected sakes: June $507,700, July $622,500. 2. Cost of goods sold is expected to be 75% of sales.
- Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of th
- Some of the transactions of Kingbird Company during August are listed below. Kingbird uses the periodic inventory method August 10 Purchased merchandise on account, $10,700, terms 2/10, n/30. 13 Retur
- Cycle Wholesaling sells merchandise on credit terms of 2/10, n/30. A sale for $1,100 (cost of goods sold of S650) was made to Sarah's Cycles on February 1. Assume Cycle Wholesaling uses a perpetual in
- On March 1 you had 3 units of inventory at a cost of $5 each ($15). You made 2 purchases during the month. You purchased 12 units at $5.20 each ($62.40) on the 2nd and you purchased 16 items at $5.25
- Cave Hardware's forecasted sales for April, May, June, and July are $200,000, $230,000, $190,000, and $240,000, respectively. Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale. The cost of goods sold
- Some of the transactions of Cullumber Company during August are listed below. Cullumber uses the periodic inventory method. August 10 Purchased merchandise on account, $12,300, terms 2/10, n/30. 13
- The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account : June 1 : Balance 25 units at $60 June 6 : Sale 20 units June 8 : Purchase
- On August 1, Olivera Company sold merchandise in the amount of $4,600 to Wyne, with credit terms of 3/10, n/30. The cost of the items sold is $3,700. Olivera uses the perpetual inventory system. On August 4, Wyne returns some of the merchandise. The selli
- Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of June, Ready-Set-Go's inventory consisted of suitcases costing $2,400. During the month of July, the following merchandisi
- In May 2017, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $518,400, July $606,200. 2. Cost of goods sold is expected to be 75% of sales.
- In May 2014, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $503,900. July $625,600. 2. Cost of goods sold is expected to be 75% of sales. 3
- In May 2017, the budget committee of Grand Stores assembles the following data in preparation for budgeted merchandise purchases for the month of June. 1. Expected sales: June $517,600, July $608,600. 2. Cost of goods sold is expected to be 75% of sales.
- The MendezCompany has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 14,000 units of finished goods on hand at December 31 and has a target fini
- Tanya Corp. sells its products on both credit and cash basis. Monthly sales are sold 20% for cash and 80% for credit. Credit sales are collected 65% in the month of sale and 35% in the following month. Sales for the first quarter are budgeted as follows:
- Tanya Corp. sells its products on both a credit and cash basis. Monthly sales are sold 20% for cash, 80% for credit. Credit sales are collected 65% in the month of sale and 35% the following month. Sales for the first quarter are budgeted as follows: Janu
- Caplico Company has prepared the following sales budget: Cost of goods sold is budgeted at 40% of sales, and the inventory at the end of February was $34,000. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sol
- On January 1, ABC Co. Department Store had an inventory of $60,000. January purchases were $70,000 and January sales were $100,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 20% of sales. Merchandise with a cost of
- A retailer in Las Vegas has an ending inventory of $250,000 as of December 31, 2012, and the following accounting information. Month ending inventory cost of goods sold January 225000 1200000 Februar
- Sheridan Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $159,500 Purchases (gross) 593,300 Freight-in 32,900 Sales revenue 974,400 Sales ret
- On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $90,000. On February 1, a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $7,500 rema
- On January 1, 2014, a subsidiary of ABC had beginning inventory with a cost of $450,000. During the month, it purchased additional inventory with a cost of $600,000. Throughout the month, it sold merchandise with a selling price of $1,200,000. Historicall
- The following transactions affecting the accounts receivable of Wonderland Corporation took place during the year ended January 31, 2015: Sales (cash sales of $210,270 and remaining credit) $591,050 Cash received from credit customers, all of whom took a
Explore our homework questions and answers library
Browse
by subject