FAU Journal Entries for Merchandising Activities Perpetual System Exam Practice

I’m working on a Business exercise and need support.

Don't use plagiarized sources. Get Your Custom Essay on
FAU Journal Entries for Merchandising Activities Perpetual System Exam Practice
Just from $13/Page
Order Essay

Problem 5-2A

Preparing journal entries for merchandising activities—perpetual system P1 P2

Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron.

CheckAug. 9, Dr. Delivery Expense, $125

Aug. 18, Cr. Cash, $4,950

Aug. 29, Dr. Cash, $4,300

Problem 6-3A

Perpetual: Alternative cost flows P1

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.)


  1. Compute cost of goods available for sale and the number of units available for sale.
  2. Compute the number of units in ending inventory.
  3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

Check (3) Ending inventory: FIFO, $18,400; LIFO, $18,000; WA, $17,760

  1. Compute gross profit earned by the company for each of the four costing methods in part 3.

(4) LIFO gross profit, $45,800

Analysis Component

  1. The company’s manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

Problem 9-3A

Aging accounts receivable and accounting for bad debts P2 P3

On December 31, Jarden Co.’s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.


  1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
  2. Prepare the adjusting entry to record bad debts expense at December 31.

Check (2) Dr. Bad Debts Expense, $27,150

Analysis Component

  1. On June 30 of the next year, Jarden concludes that a customer’s $4,750 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden’s net income?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentsPros
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Life Saver!!!!
Customer 452443, February 6th, 2021
YES! Thanks a lot!!!
Customer 452443, January 31st, 2021
Art (Fine arts, Performing arts)
Thank you.
Customer 452453, March 13th, 2021
Thank you!!!
Customer 452443, August 2nd, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live Chat+1 (985) 289-4677WhatsApp

Order your essay today and save 30% with the discount code ESSAYHELP