On September 1, Boylan Office Supply had an inventory of 35 calculators at a cost of $14 each....
Question:
On September 1, Boylan Office Supply had an inventory of 35 calculators at a cost of $14 each.
The company uses a perpetual inventory system.
During September, the following transactions occurred:
| Sept. 6 | Purchased 100 calculators at $24 each from Guthrie Co. terms 2/10, net/30. |
| Sept. 9 | Paid freight of $100 on calculators purchased from Guthrie Co. |
| Sept. 10 | Returned 4 calculators to Guthrie Co. for $100 credit (including freight) because they did not meet specifications. |
| Sept. 12 | Sold 30 calculators costing $25 (including freight) for $35 each to Lee Book Store, terms n/30. |
| Sept. 14 | Granted credit of $35 to Lee Book Store for the return of one calculator that was not ordered. |
| Sept. 20 | Sold 33 calculators costing $25 for $35 each to Orr's Card Shop, terms n/30. |
Required:
Journalize the September transactions.
Record journal entries in the order presented in the problem.
Inventory using perpetual inventory system
Recording inventory using perpetual inventory system usually updates the Cost of goods sold account for every transaction. This system uses the assigned account titles in every transaction.
Answer and Explanation: 1
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View this answer| Date | Account Title | Debit | Credit |
|---|---|---|---|
| 6-Sep | Inventory | 2,400 | |
| Cash | 2,400 | ||
| 9-Sep | Inventory | 100 | |
| Cash | 100 | ||
| 10-Sep | Accounts... |
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Perpetual Inventory System: Definition, Advantages & Examples
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Chapter 1 / Lesson 15
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Learn about the perpetual inventory system and how it is used. Explore the advantages of perpetual inventory systems and compare perpetual vs. periodic inventory.
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