Periodic_versus_perpetual Week 9

Periodic_versus_perpetual Week 9 - Dr Sales Revenue 300 Dr...

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35 COMPARISON OF ENTRIES: PERIODIC VERSUS PERPETUAL (The figures shown below are for illustrative purposes only and are not related to any question) Transaction Perpetual System Periodic System Purchase of Inventory Dr Inventory 3800 Dr Purchases 3800 Cr Accounts Payable 3800 Cr Accounts Payable 3800 Purchases Returns and Allowances Dr Accounts Payable 300 Dr Accounts Payable 300 Cr Inventory 300 Cr Purchase Returns and Allowances 300 Sale of inventory on credit Dr Accounts Receivable 3800 Dr Accounts Receivable 3800 Cr Sales Revenue 3800 Cr Sales Revenue 3800 Dr COGS 2400 No Entry for COGS/Inventory Cr Inventory 2400 Return of inventory sold
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Unformatted text preview: Dr Sales Revenue 300 Dr Sales Revenue 300 Cr Accounts Receivable 300 Cr Accounts Receivable 300 (If returned inventory is usable ) Dr Inventory 140 No Entry for Inventory/COGS Cr COGS 140 (If returned inventory is unusable ) Dr Inventory Write-Down Expense 140 No Entry for Inventory/COGS Cr COGS 140 Cash received on account with a discount Dr Cash 3430 Dr Discount Allowed 70 Dr Cash 3430 Dr Discount Allowed 70 Cr Accounts Receivable 3500 Cr Accounts Receivable 3500 Payment on Account with a discount Dr Accounts Payable 3500 Dr Accounts Payable 3500 Cr Cash 3430 Cr Discount Received 70 Cr Cash 3430 Cr Discount Received 70...
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