On April 13, the Kesselman Company purchased $25,000 of merchandise from the Krausman Company,...

Question:

On April 13, the Kesselman Company purchased $25,000 of merchandise from the Krausman Company, with terms of 1/10, n/30. On April 15, Kesselman paid $500 to Ace Trucking Company for freight on the shipment. On April 18, Kesselman Company returned $800 of merchandise for credit. The final payment was made to Krausman on April 22. Kesselman Company records purchases using the perpetual inventory system.

Required:

Prepare the journal entries that Kesselman Company should make on April 13, 15, 18, and 22.

Perpetual Inventory System:

If you use the perpetual inventory valuation method, the inventory records will be updated after every sale and purchase. So, this method will give information about inventory in real-time.

Answer and Explanation: 1

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The journal entries that Kesselman Company should make on April 13, 15, 18, and 22 are shown below

Kesselman Company
Journal...

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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

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Chapter 6 / Lesson 11
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Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.


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