Chapter 6 Periodic, Perpetual, Inventory from email

Chapter 6 Periodic, Perpetual, Inventory from email -...

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Carter begins the month of her dress selling endeavor with a balance in her inventory of $1,100 and has the following transactions: Jan. 3 rd : She purchases 20 dresses at $30 each from Dresses R Us, FOB Shipping Point, on account, 2/10, net 30 and the freight of $60 is paid for in cash by the responsible party. Jan. 5 th : Returned 5 of the dresses to DRU b/c they were damaged Jan. 8 th : Paid DRU in full Jan.12 th : Mills buys 4 dresses for $60 each, 1/15, net 30 Jan. 15 th : Mills returns 1 dress b/c it doesn’t match her shoes Jan. 20 th : Mills pays her account in full Jan 31 st : Carter does a physical inventory count and finds that inventory on hand equals $1,500 a.) Prepare the journal entries assuming Carter uses a perpetual system b.) Prepare the journal entries assuming Carter uses a periodic system c.) Calculate COGS using both methods d.) Prepare the closing entry assuming Carter uses a periodic system Perpetual Journal Entries Example
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This note was uploaded on 01/17/2012 for the course ACCT 225 taught by Professor Canace during the Fall '08 term at South Carolina.

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Chapter 6 Periodic, Perpetual, Inventory from email -...

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