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Question
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 of the 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, term 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 merchandise returned 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. |
Prepare the required journal entries that Maia's Bike Shop must make to record these transactions.
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
3.0373 Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790)?
A. $78,210
B. $10,920
C. $25,750
D. $237,547
E. $33,513
Q:
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B. $(251.52) and Scott would be willing to pay $29,748.48 for the machine.
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Q:
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Year 3
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.8264
.7513 A. $6,217.50
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E. $0.00
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Q:
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A company is evaluating the purchase of a machine for $900,000 with a six-year useful life and no salvage value. The company uses straight-line depreciation and it assumes that the annual net cash flow from using the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is the company's average investment?
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The _______________________________ is computed by dividing a project's after-tax net income by the average amount invested in it.
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In evaluating capital budgeting alternatives, there are two primary methods that do not consider the time value of money. These methods are _______________ and __________________. There are also two primary methods that consider the time value of money; these are ___________________ and _______________________.
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The process of restating future cash flows in terms of their present value is called _____________________.
Q:
The usual budget period is:
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B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
Q:
The most useful budget figures are developed:
A. From the top down.
B. From the bottom up following a participatory process.
C. Solely by the budget committee.
D. By the CEO.
E. After the accounting period has begun.
Q:
Preparing a master budget is usually the responsibility of:
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B. The marketing department.
C. A budget committee.
D. The chief financial officer.
E. Lower level management.
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Part of the cash budget is based on information drawn from the capital expenditures budget.
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Activity-based budgeting is a budget system based on expected activities and their activity levels, which helps management plan for the resources required.
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The budgets within the master budget must be prepared in a definite sequence as dictated by GAAP.
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The ______________________________ shows the budgeted costs for direct materials, direct labor, and overhead based on the budgeted production volume from the production budget.
Q:
Clic, Inc. provides the following data for the next four months: March
April
May
June
July Unit Sales 500
580
530
600 Ending Raw Materials Inventory
663 lbs. Ending Finished Goods Inventory
174 units Desired ending inventory:
Raw materials = 30% of next month's production needs
Finished goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
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Q:
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107,000 112,400 Operating expenses: Payroll
13,600 14,280 Advertising
5,400 5,700 Rent
1,500 1,500 Depreciation
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40,000 Bank loan payable
16,000 Additional data:
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(3) Operating expenses are paid in the month they are incurred.
(4) A minimum cash balance of $40,000 is required at the end of each month.
(5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available. Prepare the company's cash budget for May. Show the ending loan balance at May 31.
Q:
Which of the following statements is true regarding absorption costing?
A. It is a not the traditional costing approach.
B. It is not permitted to be used for financial reporting.
C. It is not permitted to be used for tax reporting.
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E. It requires only variable costs to be treated as product costs.
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Which of the following is not a product cost?
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Q:
When units produced exceed the units sold, income under absorption costing is higher than income under variable costing.