Problem

(Supplement C) Recording Purchases and Sales Using a Perpetual and Periodic Inventory Syst...

(Supplement C) Recording Purchases and Sales Using a Perpetual and Periodic Inventory System

Misty Company reported beginning inventory of 100 units at a unit cost of $20. It engaged in the following purchase and sale transactions during 2011:

Jan. 14 Sold 20 units at unit sales price of $47.50 on open account.

April 9 Purchased 15 additional units at unit cost of $20 on open account.

Sept. 2 Sold 45 units at sales price of $50 on open account.

At the end of 2011, a physical count showed that Misty Company had 50 units of inventory still on hand.

Required:

Record each transaction, assuming that Misty Company uses (a) a perpetual inventory system and (b) a periodic inventory system (including any necessary entries at the end of the accounting period on December 31).

To practice with more exercises, go to the text website at www.mhhe.com/libby7e.

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