Computer Warehouse S.A., a wholesaler, purchased 100 scanners from a manufacturer. The catalogue price is 3000 lei per piece, but the company received a trade discount of 10%. Computer Warehouse S.A. is subject to 19% VAT. A quantity of 40 scanners is delivered to a retailer: the normal sale price

Question

Computer Warehouse S.A., a wholesaler, purchased 100 scanners from a manufacturer. The catalogue price is 3000 lei per piece, but the company received a trade discount of 10%. Computer Warehouse S.A. is subject to 19% VAT. A quantity of 40 scanners is delivered to a retailer: the normal sale price is 4000 lei per scanner, but the company offers a 5% trade discount for purchases of more than 30 units. Provide the journal entries of all transactions.

Accepted Answer

The purchase of goods for resale[latex]^{9}[/latex] at 2700 lei each (catalogue price less trade discount):

321,300 lei % = Accounts payable[latex]^{a}[/latex] 321,300 lei
270,000 lei Merchandises
51,300 lei VAT deductible

[latex]^{a}[/latex] Other terms used for Accounts Payable are Trade Payables and Suppliers

The resale of 40 scanners at sale price 3800 lei (sale price less trade discount):

180,880 lei Accounts receivable[latex]^{a}[/latex] = % 180,880 lei

Revenue from the sale of merchandises 152,000 lei
VAT collected 28,880 lei

[latex]^{a}[/latex] Other terms used for Accounts Receivable are Trade Receivables, Clients and Customers

Disposal of items sold from inventory: 40 units * 2700 lei/unit = 108,000 lei

108,000 lei Cost of goods sold/Expenses with merchandises = Merchandises 108,000 lei

Question 5.8: Computer Warehouse S.A., a wholesaler, purchased 100 scanner...

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