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ACCT10 Accounting | Organization and Sales Account Management

Questions:

Q1. Explain the inventory system followed by merchandiser.

Q2.Assume that Guardian Company uses a periodic inventory system and has these account balances: Purchases $600,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-in $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000.

3.Deloy Company gathered the following condensed data for the year ended December 31, 2016

Cost of goods sold $ 690,000

Net sales 1,250,000

Administrative expenses 234,000

Interest expense 58,000

Dividend revenue 38,000

Loss from employee strike 233,000

Selling expenses 45,000


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