Accounting Exercise 5.2 (Accounting in Merchandising Companies)
Refer to Exercise 5.1 from Merchandising Business lecture. However, this time assume that Luxury Furniture employs the periodic inventory method and Events No.6 and 9 are as follows:
6) Furniture was sold to customers on account for $5,000;
9) Due to a mistake during the recording process, some furniture from
Event No.6 was loaded over the amount ordered. In this connection, the
buyer returned and Luxury Furniture accepted $500 of the goods.
At the end of the accounting period, the physical count showed that $4,875 of inventory remained on hand.
Required:
a) Record transactions to the general journal;
b) Prepar the cost of goods sold schedule;
c) Post transactions to T-accounts.
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