Explain perpetual inventory system?
Explain perpetual inventory system?
Homework Answers
Answer
- Perpetual Inventory System is one of the method to account and keep inventory records.
- Under this method, records are updated after each purchase or sale transaction.
- Inventory balance is adjusted with Cost of Goods Sold after each sales transactions.
- Purchase account, Freight account, Purchase return & Allowances, purchase discounts accounts are not used in relation to the purchase of inventories.
- Rather, “inventory” account is substituted in place of all above mentioned account.
Explain in your own words the difference between periodic and perpetual inventory system.
Explain in your own words the difference between periodic and perpetual inventory system.
a company that uses the perpetual inventory system purchased A company that uses the perpetual inventory system pur...
a company that uses the perpetual inventory system
purchased
A company that uses the perpetual inventory system purchased inventory for $1,000,000 on account with forms of 7. 120 Which of the following correctly records the payment made 15 days ahore date of invoice? 1,050,000 1,050,000 1,050,000 O A Cash Accounts Payable OB. Accounts Payable Merchandise Inventory Cash O c. Accounts Payable 31.500 1,018.500 1,050,000 Cash 1,050,000 1,050,000 OD. Accounts Payable Merchandise Inventory 1,050.000
Why is it important to periodically take a physical inventory when using a perpetual inventory system?...
Why is it important to periodically take a physical inventory when using a perpetual inventory system? Briefly explain the FIFO, LIFO, and Weighted Average methods of valuing inventory.
record purchase discounts of inventory using a perpetual system. Shankar company uses a perpetual system to...
record purchase discounts of inventory using a perpetual system. Shankar company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000, with terms 3/10, n/30. On February 10, the company pays on account for the inventory. Record the inventory purchase on February 2 and the payment on February 10
Closing entries — perpetual inventory system Prepare the closing entries under the perpetual inventory system The...
Closing entries — perpetual inventory system
Prepare the closing entries under the perpetual inventory
system
The trial balance of Westmeadow Weightlifting contains the following account balances at 30 June. Credit Debit $ 153 470 93 540 $2 389 720 Inventory Walter Westmeadow, Drawings Sales Sales returns and allowances Discount allowed Cost of sales Freight inwards Discount received Selling and distribution expenses Administrative expenses Other finance expenses 43 740 7740 1528 960 27 480 5360 388 150 233 411 44 440
Discuss briefly the difference between the perpetual inventory system and the periodic inventory system and how...
Discuss briefly the difference between the perpetual inventory system and the periodic inventory system and how is the amount of inventory determined when the periodic system is used?
perpetual inventory using LIFO Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method,...
perpetual inventory using LIFO
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31. a. Cost of merchandise sold on July 21 b. Inventory on July 31 * Show Me How Calculator Printiem Perpetual Inventory Using UFO Beginning inventory, purchases, and sales for Item C283 are as follows July 1 Inventory 106 units $21 5 Sale 85 units 11 Purchase 118...
Which of the following statements is not correct? A. Even in a perpetual inventory system, a...
Which of the following statements is not correct? A. Even in a perpetual inventory system, a business must count inventory at least one a year. B. Restaurants and small retail stores often use the periodic inventory system. C. In a periodic inventory system, merchandise inventory and purchasing systems are integrated with the records for Accounts Receivable and Sales Revenue. D. In a perpetual inventory system, the "cash register" at the store is a computer terminal that records sales and updates...
what is the perpetual inventory PROBLEM SET B Ming Company uses a perpetual inventory system. It...
what is the perpetual inventory
PROBLEM SET B Ming Company uses a perpetual inventory system. It entered into the following purchases and sales trans- actions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inven- tory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.) Problem 6-1B Perpetual: Alternative...
Why is the perpetual inventory system superior to the periodic system for business purposes? What are...
Why is the perpetual inventory system superior to the periodic system for business purposes? What are the two allowance methods used to account for bad debts. Explain who would be most interested in each and why. Why is accounting important to the business would Which accounting method should be used to meet GAAP requirements and why when recording a sale when a cash discount is offered?
a company that uses the perpetual inventory system
purchased
A company that uses the perpetual inventory system purchased inventory for $1,000,000 on account with forms of 7. 120 Which of the following correctly records the payment made 15 days ahore date of invoice? 1,050,000 1,050,000 1,050,000 O A Cash Accounts Payable OB. Accounts Payable Merchandise Inventory Cash O c. Accounts Payable 31.500 1,018.500 1,050,000 Cash 1,050,000 1,050,000 OD. Accounts Payable Merchandise Inventory 1,050.000
Closing entries — perpetual inventory system
Prepare the closing entries under the perpetual inventory
system
The trial balance of Westmeadow Weightlifting contains the following account balances at 30 June. Credit Debit $ 153 470 93 540 $2 389 720 Inventory Walter Westmeadow, Drawings Sales Sales returns and allowances Discount allowed Cost of sales Freight inwards Discount received Selling and distribution expenses Administrative expenses Other finance expenses 43 740 7740 1528 960 27 480 5360 388 150 233 411 44 440
perpetual inventory using LIFO
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on July 21 and (b) the inventory on July 31. a. Cost of merchandise sold on July 21 b. Inventory on July 31 * Show Me How Calculator Printiem Perpetual Inventory Using UFO Beginning inventory, purchases, and sales for Item C283 are as follows July 1 Inventory 106 units $21 5 Sale 85 units 11 Purchase 118...
what is the perpetual inventory
PROBLEM SET B Ming Company uses a perpetual inventory system. It entered into the following purchases and sales trans- actions for April. (For specific identification, the April 9 sale consisted of 8 units from beginning inven- tory and 27 units from the April 6 purchase; the April 30 sale consisted of 12 units from beginning inventory, 3 units from the April 6 purchase, and 10 units from the April 25 purchase.) Problem 6-1B Perpetual: Alternative...
Why is the perpetual inventory system superior to the periodic system for business purposes? What are the two allowance methods used to account for bad debts. Explain who would be most interested in each and why. Why is accounting important to the business would Which accounting method should be used to meet GAAP requirements and why when recording a sale when a cash discount is offered?
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