If a company uses the perpetual inventory system, purchases, purchase returns, sales, and sales returns all...
If a company uses the perpetual inventory system, purchases, purchase returns, sales, and sales returns all result in an immediate debit or credit to the inventory account.
Question 2 options:
| True | |
| False |
Homework Answers
This statement is true.
In perpetual inventory system, every transaction of purchase, sale, purchase return and sales return is entered immediately in the books means inventory account is adjusted with every transaction unlike the periodical inventory system where updations or adjustments in the accounts are made on periodical basis means at a particular time.
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If a company uses the perpetual inventory system, purchases,
purchase returns, sales, and sales returns all...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
1. 2. 3. 4. 5. A company that maintains a perpetual inventory system has an inventory...
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A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct? O Debit Sales Discounts and credit Inventory O Debit Purchases and credit Inventory O Debit Cost of Goods Sold and credit Inventory. O Debit Inventory and credit Purchases Which of the following accounts will appear in the trial balance of a merchandising company...
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
sales returns and allowances and sales discounts are EX5#13: Mack's Corporation, uses a perpetual inventory system,...
sales returns and allowances and sales discounts are
EX5#13: Mack's Corporation, uses a perpetual inventory system, it purchased on account $2,000 of merchandise on July 5. Credit terms are 2/10, n/30. It returned $400 of the merchandise on July 9. When Mack's pays its bill on August 5, the journal entry will require A. Debit to Accounts Payable for $2000. B. Credit to Accounts Payable for $1600. c. Credit to Cash for $1600. D. Credit to Cash for $1568. 20...
4) A company that uses the perpetual inventory system purchases inventory for $62,000 on account, with...
4) A company that uses the perpetual inventory system purchases inventory for $62,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? A) a debit to Accounts Payable for $62,000, a credit to Cash for $1,240, and a credit to Merchandise Inventory for $60,760 B) a debit to Merchandise Inventory for $1,240, a debit to Accounts Payable for $62,000, and a credit to Cash for $63,240...
Question 1 Gabbins Company uses the perpetual inventory system and the FIFO cost formula. Purchases Sales...
Question 1 Gabbins Company uses the perpetual inventory system and the FIFO cost formula. Purchases Sales Selling Unit Cost $50 $60 Units Price Units Beginning inventory Purchase Mar 100 1 3 60 Sales Purchase Sales Sales Sales $100 4 70 $70 10 200 $110 16 80 $110 19 80 $110 25 50 Purchase $75 30 Instructions a) Using the inventory and sales data above, calculate the value assigned to cost of goods sold in March and to the ending inventory...
5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts...
5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts Payable B) Purchase Returns and Allowances C) Inventory D) Purchases 6) Which of the following accounts is not a contra account? A. Inventory B. Accumulated Amortization C. Sales Returns and Allowances D. Sales Discounts 7) To calculate the gross margin percentage, A. Divide net sales by net income B. Divide current assets by current liabilities C. Divide total liabilities by total assets D. Divide...
Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled...
Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled $5,200, Purchase Allowances totaled $1,500, Purchase Discounts totaled $2,800, and Freight In totaled $5,000. What is Discount Dollar’s net cost of inventory purchases?
Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled...
Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled $5,200, Purchase Allowances totaled $1,500, Purchase Discounts totaled $2,800, and Freight In totaled $5,000. What is Discount Dollar’s net cost of inventory purchases?
E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During...
E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,000 from Diamond Inc. with terms 3/12, n/45. 5 Returned goods costing $950 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $900 with terms 2.5/12, n/45. 11 Paid the balance owed to Diamond Inc. 22...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
1.
2.
3.
4.
5.
A company that maintains a perpetual inventory system has an inventory account balance of $50,000. The physical count of goods on hand totals $49,600. Which of the following adjusting entries is correct? O Debit Sales Discounts and credit Inventory O Debit Purchases and credit Inventory O Debit Cost of Goods Sold and credit Inventory. O Debit Inventory and credit Purchases Which of the following accounts will appear in the trial balance of a merchandising company...
sales returns and allowances and sales discounts are
EX5#13: Mack's Corporation, uses a perpetual inventory system, it purchased on account $2,000 of merchandise on July 5. Credit terms are 2/10, n/30. It returned $400 of the merchandise on July 9. When Mack's pays its bill on August 5, the journal entry will require A. Debit to Accounts Payable for $2000. B. Credit to Accounts Payable for $1600. c. Credit to Cash for $1600. D. Credit to Cash for $1568. 20...
4) A company that uses the perpetual inventory system purchases inventory for $62,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? A) a debit to Accounts Payable for $62,000, a credit to Cash for $1,240, and a credit to Merchandise Inventory for $60,760 B) a debit to Merchandise Inventory for $1,240, a debit to Accounts Payable for $62,000, and a credit to Cash for $63,240...
Question 1 Gabbins Company uses the perpetual inventory system and the FIFO cost formula. Purchases Sales Selling Unit Cost $50 $60 Units Price Units Beginning inventory Purchase Mar 100 1 3 60 Sales Purchase Sales Sales Sales $100 4 70 $70 10 200 $110 16 80 $110 19 80 $110 25 50 Purchase $75 30 Instructions a) Using the inventory and sales data above, calculate the value assigned to cost of goods sold in March and to the ending inventory...
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