Question

Bridgeport Ltd. had beginning inventory of 52 units that cost $104 each. During September, the company purchased 206 units on account at $104 each, returned 8 units for credit, and sold 158 units at $202 each on account.

Journalize the September transactions, assuming that Bridgeport Ltd. uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record purchase on account)
(To record purchase return)
(To record sales on account)
	enter a debit amount	enter a credit amount
	enter a debit amount	enter a credit amount
(To record cost of goods sold) Journalize the September transactions, assuming that Bridgeport Ltd. uses a periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record purchase on account enter a debit amount enter a credit amount enter an account title to record purchase on account enter a debit amount enter a credit amount (To record purchase on account) enter an account title to record purchase return enter a debit amount enter a credit amount enter an account title to record purchase return enter a debit amount enter a credit amount (To record purchase return) enter an account title to record sales on account enter a debit amount enter a credit amount enter an account title to record sales on account enter a debit amount enter a credit amount (To record sales on account) Assume that Bridgeport Ltd. uses a periodic system and prepares financial statements at the end of each month. An inventory count determines that there are 92 units of inventory remaining at September 30. Prepare the adjusting entry that is needed at September 30 to report cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Sep. 30 enter an account title for the adjusting entry on September 30 enter a debit amount enter a credit amount enter an account title for the adjusting entry on September 30 enter a debit amount enter a credit amount enter an account title for the adjusting entry on September 30 enter a debit amount enter a credit amount enter an account title for the adjusting entry on September 30 enter a debit amount enter a credit amount enter an account title for the adjusting entry on September 30 enter a debit amount enter a credit amount

Answer 1

Under Perpetual:

Account title and explanation	Debit	Credit
Merchandise inventory [206 x $104]	$21,424
Accounts payable		$21,424
[To record purchase on account]
Accounts payable	$832
Merchandise inventory [8 x $104]		$832
[To record purchase return]
Accounts receivable	$31,916
Sales revenue [158 x $202]		$31,916
[To record sales on account]
Cost of goods sold [158 x $104]	$16,432
Merchandise inventory		$16,432
[To record cost of goods sold]

Under Periodic:

Account title and explanation	Debit	Credit
Purchases [206 x $104]	$21,424
Accounts payable		$21,424
[To record purchase on account]
Accounts payable	$832
Purchase returns [8 x $104]		$832
[To record purchase return]
Accounts receivable	$31,916
Sales revenue [158 x $202]		$31,916
[To record sales on account]

Adjusting entry:

Date	Account title and explanation	Debit	Credit
Sept.30	Merchandise inventory (92 x $104)	$9,568
	Purchase returns	$832
	Cost of goods sold	$16,432
	Merchandise inventory (52 x $104)		$5,408
	Purchases (206 x $104)		$21,424
	[To record cost of goods sold]