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(Solved): CPI sells computer peripherals. At December 31, year 1, CPI's inventory amounted to $700,000. Durin ...
CPI sells computer peripherals. At December 31, year 1, CPI's inventory amounted to $700,000. During the first week in January, year 2 , the company made only one purchase and one sale. These transactions were as follows. Jan. 2 purehased 20 sodens and 80 printers from sharp. The total cost of these machinen was $45,000, terns 3/10,n/60. Jan. 6 sold 30 different types of produets on account to Pace Corporation. The total salen price vas $30,000, terms 5/10, n/90. Tbe total cost of these 30 units to CPI was $14,700 (net of the purchase ditcount). CPI has a fulltime accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Required: b. Prepare journal entries to record these transactions, assuming that CPI uses a perpetual inventory system. c. Compute the balance in the inventory account at the close of business on January 6 . d. Prepare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system. e. Compute the cost of goods sold for the first week of January ossuming use of the periodic system. (Use your answer to part c as the ending inventory.) 9. Compute the gross profit margin on the January 6 sales transaction.