【正文】 epot had an inventory that included a variety of calculators. The pany uses a perpetual inventory system. During September these transactions occurred. purchased calculators from black box co. at a total cost of $620,term n/30. Sept .9 Paid freight of $50 on calculators purchased from Black Box Co. Sept 10 Returned calculators to black box co. for $38 credit because they did not meet specifications . Sept 12 Sold calculators costing $520 for $780to University Book Store, terms n/30. Sept14 Granted credit of $45 to University Book Store for the return of one calculator that was not ordered .The calculator cost $28. Sept 20 Sold calculators costing $570 for $900 to Campus Card Shop.Instructions Journalize the September transactions .E53 This information relates to Sherper Co.1. On April 5 purchased merchandise from Newport Company for$220000,terms2/10,n/30.2. On April 6 paid freight costs of $900 on merchandise purchased from Newport.3. On April 7 purchased equipment on account for $26000.4. On April 8 returned some of April 5 merchandise of Newport Company which cost $3600.5. On April 15 paid the amount due to Newport Company in full.Instructions (a) Prepare the journal entries to record the transactions listed above on the books of Sherper Co. uses a perpetual inventory system.(b) Assume that Sherper Co. paid the balance due to Newport Company on May 4 instead of April the journal entry to record this payment.E58 In its ine statement for the year ended December 31,2007,Knitz Company reported the following condensed data.Administrative expenses $435000 selling expenses $ 690000Cost of goods sold 987000 Loss on sale of equipment 83500Interest expense 68000 Net sales 2350000Interest revenue 45000Instructions(a) Prepare a multiplestep ine statement.(b) Calculate the profit margin ratio and gross profit rate.(c) In 2006 Knitz had a profit margin ratio of 9%. Is the decline in 2007 a cause for concern?E59 In its ine statement for the year ended June 30,2004, The Clorox Company report the following condensed data (dollars in millions ). Selling and Research and Administrative expenses $ 552 development expense $ 84 Net sales 4324 Ine tax expense 294 Interest expense 30 Other ine 1 Advertising expense 429 Cost of goods sold 2387Instructions (a) Prepare a multiple step ine statement.(b) Calculate the gross profit rate and the profit margin ratio and explain what each means.(c) Assume by marketing department has presented a plan to increase advertising expenses by $300 million . It expects thos plan to result in an increase in both net sales and cost of goods sold of 25%. Redo parts (a) and (b) and discuss whether this plan has merit.(Assume a tax rate of 35%,and round all amounts to whole dollars .)E510 The trial balance of Rachel Company at the end of its fisical year , August 31 , 2007, includes these accounts :Merchandise Inventory $19200。 Purchases $144000。 Sales $190000。 Freightin $8000。 Sales Returns and Allowances $3000。Freightout $1000。and Purchase Returns and Allowances $5000. The ending merchandise inventory is $25000.InstructionsPrepare a cost of goods sold section for the year ending August 31.Chapter 6Exercises E62 Dennis Lee ,an auditor with Knapp CPAs, is performing a review of Nathan Company’s inentory account. Nathan did not have a good year, and top management is under pressure to boost reported ine. According to its records, the inventory balance at yearend was $, the following information was not considered when determining that amount.1. Included in the pany’s count were goods with a cost of $250000 that the pany is holding on goods belong to Anya Corporation.2. The physical count did not include goods purchased by Nathan with a cost of $40000 that were shipped FOB shipping point on December 28 and did not arrive at Nathan’s warehouse until January 33. Included in the inventory account was $17000 of office supplies that were stored in the warehouse and were to be used by the pany’s supervisors and managers during the ing year4. The pany received an order on December 29 that was boxed and was sitting on the loading dock awaiting pickup on Decemeber shipper picked up the goods on January 1 and deliverde them on January shipping tems were FOB shipping goods had a selling price of $40000 and a cost of $ goods were not included in the count because they were sitting on the dock.5. On December 29 Nathan shipped goods with a selling price of $80000 and a cost of $60000 to Central Sales Corporation FOB shipping goods arrived on January3. Central Sales had only ordered goods with a selling price of $10000 and a cost of $8000. However, a sales manager at Nathan had authorized the shipment and said that if Central wanted to ship the goods back next week, it could.6. Included in the count was $50000 of goods that were parts for a machine that the pany on longer made. Given the higitech nature of Nathan’s products,it was unlikely that these obsolete parts had any other use .However, management would prefer to keep them on the books at cost, “since that is what we paid for them ,after all.”InstructionsPrepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item.E63 Shippers Inc. had the following inventory situations to consider at January year end.(a) Goods held on consignment for MailBoxes Corp. since December 12.(b) Goods shipped on consignment to Rinehart Holdings Inc. on January 5(c) Goods shipped to a customer, FOB destination ,on January 29 that are still in transit.(d) Goods shipped to a customer, FOB shipping point, on January 29 that