Hinson 9-1 perpetual and periodic inventory systems

Hinson 9-1 perpetual and periodic inventory systems -...

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Intermediate Accounting I Assignment 9-1 Journal Chart on Perpetual and Periodic Inventory Systems Jamie Hinson March 3, 2008 PERPETUAL PERIODIC Sales -continuously records both changes in inventory quantity and inventory cost -adjusts inventory and records cost of goods sold only at the end of each reporting period Sales Discount -immediately calculated into the records -not calculated into records until the end of the reporting period Sales Returns and Allowance -immediately calculated into the records, reduces sales revenue and accounts receivable -not calculated into records until the end of the reporting period, reduces cost of goods sold and increases inventory Purchases -adjusts both changes in inventory quantity and inventory cost -adjusts cost of goods sold only at the end of the reporting period Purchase Discount -represent reductions in the amount to be paid if remittance is made within a designated period of time, can use gross method or net method -represent reductions in the amount to be paid if
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This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

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Hinson 9-1 perpetual and periodic inventory systems -...

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