Apply perpetual inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Complete this question by entering your answers in the tabs below.PerpetualSystemApplying a perpetual inventory system, prepare the journal entries that summarize the transactions that created these balances. Includeall end-of-period adjusting entries indicated.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction list1PeriodicSystem2 Record the payment of $28,000 in cash for freightcharges.4Record merchandise purchased on account for $173,000.3 Record merchandise returned to supplier for credit of$30,000.5Record sales on account of $268,000.Record cost of merchandise sold of $166,000.6 Record the end-of-period adjusting entry. Endinginventory is $48,000.Note := journal entry has been enteredRecord entryClear entryXCreditView general journal> The following information is available for a company:Beginning inventoryInventory purchases (on account)Freight charges on purchases (paid in cash)Inventory returned to suppliers (for credit)Ending inventorySales (on account)Cost of inventory sold$ 43,000173,00028,00030,00048,000268,000166,000Required:Applying both a perpetual and a periodic Inventory system, prepare the journal entries that summarize the transactions that createdthese balances. Include all end-of-period adjusting entries indicated.

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Complete this question by entering your answers in the tabs below. Perpetual System Applying a perpetual inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list 1 Record merchandise purchased on account for $173,000. 2 Record the payment of $28,000 in cash for freight charges. Periodic System 3 Record merchandise returned to supplier for credit of $30,000. Record sales on account of $268,000. 4 5 Record cost of merchandise sold of $166,000. 6 Record the end-of-period adjusting entry. Ending inventory is $48,000. Note : = journal entry has been entered Record entry Clear entry X Credit View general journal >

Complete this question by entering your answers in the tabs below. Perpetual System Applying a perpetual inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list 1 Record merchandise purchased on account for $173,000. 2 Record the payment of $28,000 in cash for freight charges. Periodic System 3 Record merchandise returned to supplier for credit of $30,000. Record sales on account of $268,000. 4 5 Record cost of merchandise sold of $166,000. 6 Record the end-of-period adjusting entry. Ending inventory is $48,000. Note : = journal entry has been entered Record entry Clear entry X Credit View general journal >

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 11MC: Which of the following describes features of a perpetual inventory system? A. Technology is normally...

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Which of the following describes features of a perpetual inventory system? A. Technology is normally used to record inventory changes. B. Merchandise bought is recorded as purchases. C. An adjusting journal entry is required at year end, to match physical counts to the asset account. D. Inventory is updated at the end of the period.
Brown Inc. records purchases in a purchases journal and purchase returns in the general journal. Record the following transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory.
Rules of debit and credit for periodic inventory accounts Complete the following table by indicating for A through G whether the proper answer is debit or credit:
Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?
Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.
Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.