Taking into account the information provided in Exercise 5 related to transactions performed by Top Printers S.R.L., journalise all the transactions for December 20X8 if the company’s management decides to apply FIFO.

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Considering the case Top Printers S.R.L. is applying FIFO for determining the cost of goods sold, the following transactions are recorded by the entity:

1. December 3rd, 20X8, a purchase of 100 pieces at the unit price of 1100 lei/piece, involving delivery costs in the amount of 10,000 lei and resulting an acquisition cost of 1200 lei/piece previously computed; 19% VAT is applied;

142,800 lei % = Accounts payable 142,800 lei

120,000 lei Merchandise

22,800 lei VAT deductible

2. December 15th, 20X8, a sale of 120 printers at the selling price of 1500 lei/piece, VAT 19%; The selling transaction implies the following two steps:
a) Recognising the revenue (the actual sale): the selling price is in the total amount of 120 units × 1500 lei/unit = 180,000 lei:

214,200 lei Accounts receivable = % 214,200 lei

Revenues from the sale of merchandise 180,000 lei
VAT collected 34,200 lei

b) Recognising the expense (the disposal of the goods sold)—if FIFO is applied, the cost of goods sold is in the amount of 124,000 lei, as determined in Exercise 5 (Sect. 5.2.2):

124,000 lei Cost of goods sold/Expenses with merchandise = Merchandise 124,000 lei

3. December 18th, 20X8, an acquisition of 20 printers at a unit cost of 1600 lei/piece, VAT 19%;

38,080 lei % = Accounts payable 38,080 lei

32,000 lei Merchandise

6080 lei VAT deductible

4. December 23rd, 20X8, a sale of 90 printers at the selling price of 1800 lei/piece, VAT 19%:
The same two steps of the selling transaction are applied:
a) Recognising the revenue (the actual sale) − the selling price is in the total amount of 90 units × 1800 lei/unit = 162,000 lei:

192,780 lei Accounts receivable = % 192,780 lei

Revenues from the sale of merchandise 162,000 lei
VAT collected 30,780 lei

b) Recognising the expense (the disposal of the goods sold) − if FIFO is applied, the cost of goods sold is in the amount of 112,000 lei, as determined in Exercise 5 (Sect. 5.2.2):

112,000 lei Cost of goods sold/Expenses with merchandise = Merchandise 112,000 lei

Question 5.9: Taking into account the information provided in Exercise 5 r...

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