spring2011periodandperpetSOLUTIONS - Please prepare these...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/20/2012 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

Page1 / 6

spring2011periodandperpetSOLUTIONS - Please prepare these...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online