Question

Determine the ending balance of the Merchandise Inventory account given the following transactions:

TooDaLoo had a beginning balance of $8,500 in its Merchandise Inventory account. They purchased $45,000 worth of inventory on account from WeeParcel under the credit terms 2/10, n/60. Transportation costs amounted to $700 and the goods were delivered FOB shipping point. TooDaLoo returned $3,000 worth of inventory because it arrived damaged and paid for the remaining inventory within the discount period. TooDaLoo sold inventory costing $17,500 for $62,000 under the credit terms 2/5, n/15. Transportation costs amounted to $900 and the goods were delivered FOB destination. The buyers paid TooDaLoo within the discount period.

Answer 1

$16,550

Answer 2

please

Answer 3

=>Merchandise inventory-BB : 8500
They purchased $45,000 worth of inventory on account from WeeParcel under the credit terms 2/10, n/60.
=>purchases 45000
Account payable 45000
Transportation costs amounted to $700 and the goods were delivered FOB shipping point
=> Buyer pays for Freight in
=> Freight in 700
Cash 700
TooDaLoo returned $3,000 worth of inventory because it arrived damaged and paid for the remaining inventory within the discount period
=> Account payable 3000
Purchases returns and allowances
3000
TooDaLoo sold inventory costing $17,500 for $62,000 under the credit terms 2/5, n/15
=> Account Receivable 62000
Sales Revenue 62000
cost of good sold 17500
Merchandise inventory 17500
Transportation costs amounted to $900 and the goods were delivered FOB destination=> Seller pays
Freight in 900
Cash 900
The buyers paid TooDaLoo within the discount period
=> Cash 17150
sales discount 350
A/R 17500


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