Question

Your company uses the Perpetual Inventory system. What is the 4-row journal entry to record a cash-based sale? (1) dr. (to record the sale) > Choose... (2) cr. (to record the sale) Choose... (3) dr. (to remove inventory) cr. Sales Revenue dr. Cash (4) cr. (to remove inventory) dr. Cost of Goods Sold cr. Merchandise Inventory Your company uses the Periodic Inve dr. Merchandise Inventory What is the journal entry when a cuscr. Cash purchas dr. Accounts Receivable dr. Choose... cr. Cost of Goods Sold

  

Answer 1

Please find the attached sheet for detailed answer,

Summary-

Periodic inventory-Under This inventory system the inventory is counted after a specific period, and the COGS is recorded at the end of this specific period.

Perpetual inventory-Under this inventory method the inventory is counted immediatly, Since the COGS is booked at the event of sale of inventory.Under this method period stocktaking is not required,since the stock in and stock out is recorded immediately.

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X х Cla 9 9.aug - Microsoft Excel Home Insert Page Layout Formulas Data Review View ? X Σ AutoSum Times New Rom - 11 A A Wrap Text General Fill 4 Cut Eg Copy Paste Format Painter Clipboard C22 BI U *Merge & Center +.0.00 .00 0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear Sort & Find & Filter - Select Editing Font Alignment Number Cells fox A B с C D E F G H 1 J K L M N 1 2 Solution- 1] Cash based sale journal entry in perpetual inventory system- 3 4 1 Cash 2 Sales Revenue 3 COGS 4 Merchandise inventory Dr. Cr. Dr. Cr. 5 6 7 2] Return of goods under periodic inventory system- 8 9 Sales return and allowances Accounts receivable Dr. Cr 10 11 3] Return of goods under perpetual inventory system- 12 13 1 Sales return and allowances 2 Accounts receivable 3 Merchandise inventory 4 COGS Dr. Cr. Dr. Cr. 14 15 16 4] Return of goods to own vendor[Periodic Inventory]- Accounts Payable Dr. Purchase return and allowances Cr. 17 18 19 5] Return of goods to own vendor[Perpetual inventory)- Accounts payable Merchandise inventory Dr. Cr. 20 21 22 23 24 25 Sheet1 Sheet2 Sheet4 Sheet3 Sheets Ready O 100% + O 1 09:59 16-09-2020