Chapter 6 Exercises
CHAPTER 6
ACCOUNTING FOR MERCHANDISING BUSINESSES
PRACTICE EXERCISES
PE 6–1A
$140,775 ($127,500 + $435,600 – $422,325)
PE 6–1B
$31,850 ($17,500 + $141,750 – $127,400)
PE 6–2A
Cost of merchandise sold: Merchandise inventory, July 1 $ 88,370 Purchases $681,400 Less: Purchases returns and allowances $9,250 Purchases discounts 7,000 16,250 Net purchases $665,150 Add transportation in 3,180 Cost of merchandise purchased 668,330 Merchandise available for sale $756,700 Less merchandise inventory, July 31 92,120 Cost of merchandise sold $664,580
PE 6–2B
Cost of merchandise sold: Merchandise inventory, April 1 $ 128,120 Purchases $983,400 Less: Purchases returns and allowances $ 10,250 Purchases discounts 8,000 18,250 Net purchases $965,150 Add transportation in 5,680 Cost of merchandise purchased 970,830 Merchandise available for sale $ 1,098,950 Less merchandise inventory, April 30 140,500 Cost of merchandise sold $ 958,450
PE 6–3A
a. Accounts Receivable 12,250 Sales 12,250
Cost of Merchandise Sold 7,400 Merchandise Inventory 7,400
b. Cash 12,005 Sales Discounts 245 Accounts Receivable 12,250
PE 6–3B
a. Accounts Receivable 22,500 Sales 22,500
Cost of Merchandise Sold 14,150 Merchandise Inventory 14,150
b. Cash 22,275 Sales Discounts 225 Accounts Receivable 22,500
PE 6–4A
a. $5,880. Purchase of $7,500 less the return of $1,500 less the discount of
$120 [($7,500 – $1,500) × 2%)].
b. Merchandise Inventory
PE 6–4B
a. $11,385. Purchase of $13,200 less the return of $1,700 less the discount of
$115 [($13,200 – $1,700) × 1%].
b. Accounts Payable PE 6–5A
a. $5,350. Purchase of $6,000 less return of $1,000 less the discount of
$50 [($6,000 – $1,000) × 1%] plus $400 of shipping.
b. $1,568. Purchase of $2,500 less return of $900 less the discount of
ACCOUNTING FOR MERCHANDISING BUSINESSES
PRACTICE EXERCISES
PE 6–1A
$140,775 ($127,500 + $435,600 – $422,325)
PE 6–1B
$31,850 ($17,500 + $141,750 – $127,400)
PE 6–2A
Cost of merchandise sold: Merchandise inventory, July 1 $ 88,370 Purchases $681,400 Less: Purchases returns and allowances $9,250 Purchases discounts 7,000 16,250 Net purchases $665,150 Add transportation in 3,180 Cost of merchandise purchased 668,330 Merchandise available for sale $756,700 Less merchandise inventory, July 31 92,120 Cost of merchandise sold $664,580
PE 6–2B
Cost of merchandise sold: Merchandise inventory, April 1 $ 128,120 Purchases $983,400 Less: Purchases returns and allowances $ 10,250 Purchases discounts 8,000 18,250 Net purchases $965,150 Add transportation in 5,680 Cost of merchandise purchased 970,830 Merchandise available for sale $ 1,098,950 Less merchandise inventory, April 30 140,500 Cost of merchandise sold $ 958,450
PE 6–3A
a. Accounts Receivable 12,250 Sales 12,250
Cost of Merchandise Sold 7,400 Merchandise Inventory 7,400
b. Cash 12,005 Sales Discounts 245 Accounts Receivable 12,250
PE 6–3B
a. Accounts Receivable 22,500 Sales 22,500
Cost of Merchandise Sold 14,150 Merchandise Inventory 14,150
b. Cash 22,275 Sales Discounts 225 Accounts Receivable 22,500
PE 6–4A
a. $5,880. Purchase of $7,500 less the return of $1,500 less the discount of
$120 [($7,500 – $1,500) × 2%)].
b. Merchandise Inventory
PE 6–4B
a. $11,385. Purchase of $13,200 less the return of $1,700 less the discount of
$115 [($13,200 – $1,700) × 1%].
b. Accounts Payable PE 6–5A
a. $5,350. Purchase of $6,000 less return of $1,000 less the discount of
$50 [($6,000 – $1,000) × 1%] plus $400 of shipping.
b. $1,568. Purchase of $2,500 less return of $900 less the discount of