periodandperpetualSOLUTIONS

# periodandperpetualSOLUTIONS - Please prepare these entries...

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Please prepare these entries using the periodic method. Then do it using the perpetual method. You will need to do this for your quiz and for test two. PERIODIC METHOD Assume a beginning inventory of \$30,000. a) Your store bought \$20,000 in inventory, 2/10, n/30. Purchases 20,000 A/P 20,000 b) Your store returns \$1,000 of that inventory to the supplier. A/P 1,000 Purchases Returns and Allowances 1,000 c) Your store pays the bill within the discount period. A/P 19,000 Purchases Discounts 380 Cash 18,620 d) Your store incurs the freight cost of a purchase, \$400. Freight – In 400 Cash 400

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e) Your store sells \$2,000 in merchandise inventory, 2/10, n/30. The cost of this inventory was \$1,000. A/R 2,000 Sales 2,000 Don’t record Cost of Goods Sold or reduction in inventory because this method doesn’t keep track of those figures. f) The customer returns \$500 of the inventory. The cost of this inventory was \$250. Sales Returns and Allowances
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periodandperpetualSOLUTIONS - Please prepare these entries...

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