Dawson Enterprises uses the perpetual system to record inventory transactions. In a recent month,...
Question:
Dawson Enterprises uses the perpetual system to record inventory transactions. In a recent month, Dawson engaged in the following transactions:
a. On April 1, Dawson purchased merchandise on credit for $21,900 with terms 2/10, n/30.
b. On April 2, Dawson purchased merchandise on credit for $24,600 on terms 3/15, n/25.
c. On April 9, Dawson paid for the purchase made on April 1.
d. On April 25, Dawson paid for the merchandise purchased on April 2.
Required:
Prepare journal entries for these four transactions.
Account Payable-
Account payable refers to a person, business from which the business purchases services or goods on credit. Payment on account of account payable is a short-term liability, as it is made within 12 months.
Answer and Explanation: 1
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View this answerPrepare Journal
| Date | Particular | Amount | Amount | |
| 1-4 | Inventory A/c | $21,900 | ||
| To Account Payable A/c | $21,900 | |||
| (To record purchase of... |
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Perpetual Inventory System: Definition, Advantages & Examples
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Chapter 1 / Lesson 15
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Perpetual inventory systems are used by businesses to monitor their inventories in real-time with the use of radio frequency identification, barcodes, point of sales, and other technological systems. Learn about the definition of a perpetual inventory system, the advantages of using this system, and some examples of perpetual inventory systems.
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