A retailer acquires merchandise for resale. How would this be recorded in a perpetual inventory system?
A retailer acquires merchandise for resale. How would this be recorded in a perpetual inventory system?
Homework Answers
When an inventory is purchased for resale same is recorded under the head current asset -"Merchandise inventory".
Under perpetual inventory system ,separate inventory account is maintained (in place of purchase account )
Journal entry for purchase of inventory for resale :
| Date | Account title | Debit | credit |
| At time of purchase | Merchandise inventory | xxx | |
| cash/ accounts payable | xxx |
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A retailer acquires merchandise for resale. How would this be recorded in a perpetual inventory system?
on the balance sheet of a retailer the merchandise inventory account A company that uses the perpetual inventor...
on the balance sheet of a retailer the merchandise inventory
account
A company that uses the perpetual inventory system purchases inventory for $60,000 on account, with terms of 2/10, n/30. Which of the following is the jounal entry to record the payment made within 10 days? OA a debit to Accounts Payable for $60,000, a credit to Merchandise Inventory for $1,200, and a credit to Cash for $58,800 B. a debit to Accounts Payable for $58,800, a debit to Merchandise...
13. In the perpetual inventory system, purchases discounts are recorded by the buyer in the a)...
13. In the perpetual inventory system, purchases discounts are recorded by the buyer in the a) Merchandise Inventory account b) Purchases Discount account c) Sales Discount account d) Merchandise Discounts account e) None of the above. mnute the ending inventory using
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...
Using a perpetual inventory system, Big Bang Inc. purchases of $30,000 of merchandise on account. How...
Using a perpetual inventory system, Big Bang Inc. purchases of
$30,000 of merchandise on account. How should they record this
purchase?
Using a perpetual inventory system, Big Bang Inc. purchases of $30,000 of merchandise on account. How should they record this purchase? Select one: O a. increase in Merchandise Inventory. O b. decrease in Sales. O c. increase in Sales. O d. decrease in Merchandise Inventory.
Using the perpetual inventory system, what account would be credited to record the return of merchandise...
Using the perpetual inventory system, what account would be credited to record the return of merchandise on account from the standpoint of the buyer?
3) Which of the following is NOT recorded in a modern perpetual inventory system? A) units...
3) Which of the following is NOT recorded in a modern perpetual inventory system? A) units purchased and cost amounts B) units sold and sales and cost amounts C) the quantity of merchandise inventory on hand and its cost D) timeliness of vendor deliveries
L02. How are merchandise inventory costs determined under a perpetual inventory system Use the following information...
L02. How are merchandise inventory costs determined under a perpetual inventory system Use the following information to answer the next 2 questions: Beginning Inventory January 1st = 100 units x $10 = $1,000 Purchases on January 15th = 100 units x S12 = $1,200 a) Using the perpetual system and FIFO method, what is the Cost of Goods Sold if we sell 125 units on January 20th? Please show work b) Using the perpetual system and LIFO method, what is...
A company uses perpetual inventory system and recorded the following entry: Debit Credit Accounts Payable 2500...
A company uses perpetual inventory system and recorded the following entry: Debit Credit Accounts Payable 2500 Cash 2450 Merchandise Inventory 50 This entry reflects a?
If a perpetual inventory system is used and a physical count discloses a shortage, the cost of merchandise sold...
If a perpetual inventory system is used and a physical count discloses a shortage, the cost of merchandise sold should be debited and the merchandise inventory account credited. 1) True 2) False Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period. 1) True 2) False
4. Stratege Consulting LLC is a Retailer and it uses the Perpetual Inventory System to account...
4. Stratege Consulting LLC is a Retailer and it uses the Perpetual Inventory System to account for its inventories, please prepare the lournal entries for the transactions below: May 1. Purchased merchandise from Estridge on account for $50,000 and Freight is FOB Destination was paid $1,000 cash. The credit terms is 2/10, N/30. May 5 Stratege Consulting LLC Returned $10,000 of the merchandise to Estridge & received a credit. May 9 Stratege Consulting LLC Paid Estridge. May 15 Stratege Consulting...
on the balance sheet of a retailer the merchandise inventory
account
A company that uses the perpetual inventory system purchases inventory for $60,000 on account, with terms of 2/10, n/30. Which of the following is the jounal entry to record the payment made within 10 days? OA a debit to Accounts Payable for $60,000, a credit to Merchandise Inventory for $1,200, and a credit to Cash for $58,800 B. a debit to Accounts Payable for $58,800, a debit to Merchandise...
13. In the perpetual inventory system, purchases discounts are recorded by the buyer in the a) Merchandise Inventory account b) Purchases Discount account c) Sales Discount account d) Merchandise Discounts account e) None of the above. mnute the ending inventory using
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...
Using a perpetual inventory system, Big Bang Inc. purchases of
$30,000 of merchandise on account. How should they record this
purchase?
Using a perpetual inventory system, Big Bang Inc. purchases of $30,000 of merchandise on account. How should they record this purchase? Select one: O a. increase in Merchandise Inventory. O b. decrease in Sales. O c. increase in Sales. O d. decrease in Merchandise Inventory.
3) Which of the following is NOT recorded in a modern perpetual inventory system? A) units purchased and cost amounts B) units sold and sales and cost amounts C) the quantity of merchandise inventory on hand and its cost D) timeliness of vendor deliveries
L02. How are merchandise inventory costs determined under a perpetual inventory system Use the following information to answer the next 2 questions: Beginning Inventory January 1st = 100 units x $10 = $1,000 Purchases on January 15th = 100 units x S12 = $1,200 a) Using the perpetual system and FIFO method, what is the Cost of Goods Sold if we sell 125 units on January 20th? Please show work b) Using the perpetual system and LIFO method, what is...
If a perpetual inventory system is used and a physical count discloses a shortage, the cost of merchandise sold should be debited and the merchandise inventory account credited. 1) True 2) False Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period. 1) True 2) False
4. Stratege Consulting LLC is a Retailer and it uses the Perpetual Inventory System to account for its inventories, please prepare the lournal entries for the transactions below: May 1. Purchased merchandise from Estridge on account for $50,000 and Freight is FOB Destination was paid $1,000 cash. The credit terms is 2/10, N/30. May 5 Stratege Consulting LLC Returned $10,000 of the merchandise to Estridge & received a credit. May 9 Stratege Consulting LLC Paid Estridge. May 15 Stratege Consulting...
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