Sanborn company rents space to a tenant for $3,100 per month. the tenant currently owes rent for november and december. the tena

A retail bank

Answer:

Explanation:

a. On March 2

Debiting Accounts Receivable A/c $$887,400

                                             Crediting Sales A/c $$887,400

(Recognizing the sale of inventory at sale price)

Debiting Cost of Goods Sold A/c $

                    Crediting Merchandise Inventory A/c $571,700

(Recognizing merchandise sold at cost)

b. On March 8

Debiting Sales Return and Allowance A/c  $103,200

                                 Crediting Accounts Receivable  $103,200

(Recording the sales return)

Debiting Merchandise Inventory A/c  $62,500

                                        Crediting Cost of Goods Sold A/c  $62,500

(Recording the sales return)

c. On March 12

Debiting Cash A/c $768,516

Debiting Sales Discounts A/c $15,684

         Crediting Accounts Receivable A/c $784,200

(Recording cash received)

Calculating the balance owed is as follows:

= Sale of inventory - Returns

= $887,400 - $103,200

= $784,200

And the discount = $784,200 × 2% = 15,684

Peter has been employed as a computer systems analyst at the company. In this role, he identifies the business requirements and formulates computer-based systems to meet those needs. It's essential for him to grasp intricate business details and collaborate with team members who are familiar with the company's operations to establish its requirements accurately. This is a technical role necessitating proficiency in information technology.

Answer:

This is a proposed journal entry template for recording the sale.

Dr Cash $60,000

Dr Accumulated Depreciation $216,000

Dr Gain/Loss on Disposal of Assets $24,000

Cr Property, Plant & Equipment $300,000

Explanation:

The assumption is that a piece of equipment was utilized beginning January 1, 2014, costing $300,000, with a salvage value of $60,000. It was sold on June 30, 2018, for $60,000, and the accumulated depreciation amounted to $216,000. Therefore, to document this transaction, we Debit Cash for $60,000, Debit Accumulated Depreciation for $216,000, and Debit Gain/Loss on Disposal of Assets for $24,000 while Credit Property, Plant & Equipment for $300,000.

Calculation for Gain/Loss on Disposal of Assets:

Using the formula:

Carrying Value = Cost - Accumulated

Depreciation

The carrying value calculates as:

300,000 - 216,000 = $84,000.

The asset loss on disposal computes as:

60,000 - 84,000 = a loss of $24,000.

Answer:

Using the respective methods: Ending Inventory // COGS

W/A      2,585.75  //  10,549.25

FIFO     2,620     //    10,515

LIFO     2,539    //     10,596

Explanation:

Sales: 102 units

Sept. 1 Inventory         12 units $100  $  1,200

Sept. 12 Purchases    45 units $103  $  4,635

Sept. 19 Purchases    50 units $104  $  5,200

Sept. 26 Purchases   20 units $105  $  2,100

Available for sale      127 units           $ 13, 135

Ending Inventory     127 - 102 = 25 units

COGS is calculated by taking the cost of goods minus the units left in ending inventory.

Weighted average:

$13,135 / 127 units = 103.42519685 = 103.43 cost per unit

Ending Inventory: 25 units x $ 103.43 = $ 2,585.75

COGS: 13,135 - 2,585.75 = 10,549.25

FIFO

First sold, last remaining items in inventory

20 x 105 = 2,100 September 26th

 5 x 104 =    520 September 19th

Remaining inventory      2,620

COGS 13,135  -  2,620 = 10,515

LIFO

Last sold, first remaining in inventory

12 x 100 = 1,200 September   1st

13 x 103  = 1,339 September 12th

Remaining inventory      2,539

COGS  13,135 - 2,620 = 10,596