ACC 290 Week 4 DQ2
ACC 290 Week 4 DQ2
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Date Created: 11/11/15
Week 4 DQZ What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise How would these transactions differ with a periodic versus a perpetual inventory system The perpetual system of inventory keeps a running tally of inventory that is live and this is done by automatically making changes to the inventory as each item is sold freight cost returned or discounted items The periodic system keeps track of the inventory but does not take into consideration costs for freight items sold returned or discounted items The periodic system updates its inventory by taking a count at the end of the period and subtracting the ending inventory from the available goods or Goods available beginning inventory purchases Sale of Merchandise on credit Perpetual System June 12 Accounts Receivable 5000 Sales Revenue 5000 To record Sale of Merchandise on credit Cost of Goods Sold 1250 Inventory 1 25 0 Return of Merchandise Sold Perpetual System June 12 Sales Returns amp Allowances 914 Accounts Receivable 914 To record return of merchandise sold Inventory 301 Cost of Goods Sold 301 Cash Received on Account with discount Perpetual System June 12 Cash 9743 Sales Discounts 257 Accounts Receivable 10000 To record cash received on acct with discount References Kimmel P D Weygandt J J amp Kieso D E 2011 Financial accounting Tools for business decision making 6th ed Hoboken NJ John Wiley amp Sons
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