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Exercise 6-9
Requirement 1
May 2
Debit
Credit
Inventory
2,500
Accounts Payable
2,500
Accounts Payable
2,020
Inventory
101
Cash
1,919
(Pay on account with 5% discount)
($101 = $2,020 × 5%)
May 30
Accounts Receivable
3,650
Sales Revenue
3,650
Requirement 2
May 24
Debit
Credit
Accounts Payable
2,020
Cash
2,020
(Pay cash on account)
Exercise 6-10
July 5
Debit
Credit
Inventory
67,200
Accounts Payable
67,200
(Purchase inventory on account)
July 8
July 28
Accounts Receivable
79,800
Sales Revenue
79,800
(Sell inventory on account)
Cost of Goods Sold
59,584
Chapter 06 - Inventory and Cost of Goods Sold
Exercise 6-11
August 6
Debit
Credit
Inventory
6,800
Accounts Payable
6,800
(Purchase inventory on account)
August 7
Inventory
200
Cash
200
(Pay freight-in cost)
Exercise 6-12
August 6
Accounts Receivable
6,800
Sales Revenue
6,800
(Sell inventory on account)
Exercise 6-13
Requirement 1
Inventory
Quantity
Lower of Cost
or Market
Ending
Inventory
Requirement 2
Debit
Credit
Cost of Goods Sold
1,300
Requirement 3
The write-down of inventory has the effects of reducing total assets (inventory),
Exercise 6-14
Requirement 1
Inventory
Quantity
Lower of Cost
or Market
Ending
Inventory
Shirts
52
$ 75
$ 3,900
$18,860
Requirement 2
Debit
Credit
Cost of Goods Sold
840
Requirement 3
The write-down of inventory has the effects of reducing total assets (inventory),
Chapter 06 - Inventory and Cost of Goods Sold
Exercise 6-15
Requirement 1
Lewis
Clark
Beginning inventory
$ 13,000
$ 16,000
Add: Purchases
132,000
140,000
Requirement 2
Lewis
Clark
Inventory
Requirement 3
Lewis
Clark
Average
365
365
365
Requirement 4
Lewis seems to be managing its inventory more efficiently. For Lewis, inventory turns
Exercise 6-16
Requirement 1
Gross
profita
Operating
Incomeb
Income before
income taxesc
Net
Incomed
Henry
$13,600
$ 8,500
$7,600
$6,300
Requirement 2
Henry
Grace
James
Gross
Chapter 06 - Inventory and Cost of Goods Sold
Exercise 6-17
Requirement 1
May 2
Purchases
2,500
Accounts Payable
2,500
(Purchase inventory on account)
May 3
Requirement 2
May 31
Debit
Credit
Inventory (ending)
0
Cost of Goods Sold
2,039
Purchase Returns
480
Exercise 6-18
Requirement 1
July 5
Purchases
67,200
Accounts Payable
67,200
(Purchase inventory on account)
July 8
Requirement 2
July 31
Debit
Credit
Inventory (ending)
0
Cost of Goods Sold
59,584
Exercise 6-19
August 6
Debit
Credit
Purchases
6,800
Accounts Payable
6,800
(Purchase inventory on account)
August 7
August 14
Accounts Payable
6,400
Purchase Discounts
320
Cash
5,080
Requirement 2
August 31
Debit
Credit
Inventory (ending)
1,570
Cost of Goods Sold
4,710
Purchase Returns
400
Exercise 6-20
Requirement 1
When goods are shipped FOB destination, title transfers from the seller to the buyer
Requirement 2
Balance Sheet
Income Statement
Year
Assets
Liabilities
Stockholders’
equity
Revenues
Cost of
goods sold
Gross Profit
