What account will be debited when goods are returned by customers if a perpetual inventory system is used?
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If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage? Show
1) 2) 3) 4) The Corbit Corp. sold merchandise for $10,000 cash. The cost of the merchandise sold was $7,590. The journal entries to record this transaction under the perpetual inventory system would be 1) Cost of Merchandise Sold 7,590 Sales 7,590 2) Cost of Merchandise Sold 10,000 Merchandise Inventory 10,000 3) Cost of Merchandise Sold 7,590 Merchandise Inventory 7,590 4) Cost of Merchandise Sold 7,590 Merchandise Inventory 7,590 Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost
of the merchandise sold is $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise returned that originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? 1) 2) 3) 4) Pierce Company sold to Stanton Company merchandise on account FOB shipping point,
2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make to record this sale? 1) 2) 3) 4) Cumberland Co. sells $2,000 of inventory to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded? 1) 2) 3) 4) Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $15,000. Emma Co. prepaid the $750 shipping charge. Using the perpetual inventory
method, which of the following entries will Isabella Co. make to record payment of the merchandise if Isabella Co. pays within the discount period? 2) 3) 4) During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $350,000 instead of the correct amount of $280,000. The effect on the balance sheet and income statement would be 1) 2) 3) 4) Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and owner's equity? 1) 2) 3) 4) Which accounts are debited in perpetual inventory system?Journal Entries for Merchandise Purchaser (Perpetual Method)
As inventory is purchased, the Merchandise account is debited. As inventory is sold, the Merchandise Inventory account is credited, and Cost of Goods Sold is debited for the cost of the inventory sold.
How do you record purchase return in perpetual inventory system?Perpetual inventory system
Under the perpetual system, the company can make the purchase return journal entry by debiting accounts payable or cash account and crediting inventory account. In this journal entry, the company directly reverses the inventory back in the amount of the returned goods.
What account is debited when recording a inventory purchase using the perpetual inventory system?What account is debited when recording a purchase of inventory when using the perpetual inventory system? The Merchandise Inventory account is debited when recording the purchase of inventory using the perpetual inventory system.
When the perpetual inventory system is used carriage on purchases is debited to the asset account?When the perpetual inventory system is used, carriage on purchases, is debited to the asset account, inventory, since the cost of sales must be brought into account with each sales transaction and carriage on purchases constitutes an integral part of the cost per unit. Question 2.
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