Week 5 Checkpoint-Inventory Systems and Calculating Revenues, Expenses, and Income

# Week 5 Checkpoint-Inventory Systems and Calculating Revenues, Expenses, and Income

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QS 5-8A Contrasting periodic and perpetual systems C3 Identify whether each description best applies to a periodic or a perpetual inventory system. a. Provides more timely information to managers. Perpetual b. Requires an adjusting entry to record inventory shrinkage. Perpetual c. Markedly increased in frequency and popularity in business within the past decade. Perpetual d. Records cost of goods sold each time a sales transaction occurs. Perpetual Exercise 5-9 Calculating revenues, expenses, and income C1 C4 Fill in the blanks in the following separate income statements a through e . Identify any negative amount by putting it in parentheses. Sales . . . . . . . . . . . . . . . . \$60,000 \$42,500 \$36,000 \$ 78,000 \$23,600 Cost of goods sold Merchandise inventory (beginning) . . . 6,000 17,050 7,500 7,000 2,560 Total cost of merchandise purchases . 36,000 1,550 33,750 32,000 5,600 Merchandise inventory (ending) . . . .(7,950) (2,700) (9,000) (6,600) (2,560) Cost of goods sold . . . . . . . . . . 34,050

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Week 5 Checkpoint-Inventory Systems and Calculating Revenues, Expenses, and Income

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