Periodic Inventory System The following selected transactions were completed by Air System...
Question:
Perpetual Inventory System
The following selected transactions were completed by Air System Company during January of the current year. Air System Company uses the perpetual inventory system.
Jan. 2. Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15,n/30.
5. Paid freight of $190 on the January 2 purchase.
6. Returned $2,750 of the merchandise purchased on January 2.
13. Sold merchandise on account, $37,300, FOB destination 1/10, n/30. The cost of merchandise sold was $22,400.
15. Paid freight of $215 for the merchandise sold on January 13.
17. Paid for the purchase of January 2 less the return and discount.
23. Received payment on account for the sale of January 13 less than the discount.
Journalize the entries to record the transactions of Air Systems Company.
Purchases and Sales Using a Perpetual Inventory System
It is very important to both practice and to learn how to record transactions under a perpetual inventory system. These transactions include recording in the proper general ledger accounts the purchases from inventory from a third party; the recording of any merchandise returns to a third party; the record of any prompt payment discounts on the invoice from the supplier/vendor; and then the subsequent sale of the inventory to a customer, including their returns and any prompt payment discounts the customer takes advantage of.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerJournalize the entries to record the transactions of Air Systems Company.
Jan. 2. Purchased $18,200 of merchandise on account, FOB shipping point,...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:

from
Chapter 1 / Lesson 15Perpetual 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.
Related to this Question
- The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $18,400 of merch
- The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $18,200 of mercha
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan
- The following selected transactions were completed by Artic Company during February of the current year. Artic Company uses the periodic inventory system. Feb. 2. Purchased $17,500 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5. Paid f
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on the periodic system. On January 1, 2016, beginning inventory consisted of 350 u
- The following transactions occurred during January 2018: Jan.1 Sold merchandise for cash, $2,900. The cost of the merchandise was $1,400. The company uses the perpetual inventory system. 2 Purchased
- Trans Co. uses the periodic inventory system. The following are inventory transactions for the month of January: Jan. 1 Beginning inventory 10, 000 units @ $3 5 Purchase 8, 000 units @ $4 15 Purchase 5, 000 units @ $6 20 Sales at $10 per unit 14, 000 uni
- Montoure Company uses a periodic inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan.1- Beginning inventory 690units@ $80.00 per unit Feb.10
- Trans Co. uses the periodic inventory system. The following are inventory transactions for the month of January: Jan. 1 Beginning inventory 10, 000 units @ $3 5 Purchase 8, 000 units @ $4 15 Purchase 5, 000 units @ $6 20 Sales at $10 per unit 14, 000 unit
- A company that uses perpetual inventory system made the following cash purchases and sales: January 1 Purchased 100 units at $10 per unit. February 5: Purchased 60 units at $12 per unit.
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory
- Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inventory 10,000 units at $3 1/5 Purchase 5,000 units at $4 1/15 Purchase 5,000 units at $5 1/20 Sales at $10 per unit 10,000 units
- During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows: Units Cost per unit Beginning Inventory 100 $15 Jan. 5, Sales 50 Jan. 10, Purchases 70 $13 Jan. 15, Sale 25 Jan. 25, Sale 35 Require
- A company that uses a perpetual inventory system made the following cash purchases and sales: January 1: Purchased 100 unit at $10 per unit. February 5: Purchased 60 units at $12 per unit. March 16: Sold 40 units for $16 per unit. 1.Prepare general journa
- The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system: Date Activities Units Acquired at Cost Cost per Unit Uni
- The following selected transactions were completed by Lorimer Company during August of the current year. Lorimer Company uses the periodic inventory system. Aug. 3. Purchased $24,500 of merchandise on account, FOB shipping point, terms 2/10, n/30. 4. Pa
- Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records for the most popular item in inventory showed the following: Transactions Units Unit Cost Beginning inventory, Jan
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 700 units@ $50 per unit Feb. 10 Purc
- A company uses the periodic inventory system and had the following activity during the current monthly period. November 1: Beginning inventory of 113 Units @ $10 November 5: Purchased 113 Units a $26
- Nix-It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix-It uses the perpetual inventory system). Merchandise inventory $ 44,80
- Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under the FIFO method. Assume the periodic inventory system is used. January 1: Beginning inventory of 150 items at $6 April 1:
- Simple Plan Enterprises uses a periodic inventory system its records showed the following: Inventory December 31, using FIFO 66 units $28 $1,848 Inventory December 31, using FIFO 66 units $24 $1,584
- Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: DATE ACTIVITY UNIT PRICE 5/1 Beginning Inventory 100 $12 5/5 Purchase 200
- Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. 033 Mar. 1 Beginning inventory 150 units @ $52.89 per unit Mar. 5 Purchase 250 u
- Monarch Company uses a weighted-average perpetual inventory system and has the following purchases and sales: January 1, 20 units were purchased at $10 per unit On January 12, 12 units were sold. J
- Given the following selected account balances of Shanta Company. Sales $1,298,000 Raw materials inventory, Dec 31, 2012 37,000 Goods in process inventory, Dec 31, 2012 53,400 Finished goods inventory
- Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO 64 Units @ $27 = $1,728 Inventory, December 31, using LIFO 64 Units @
- A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,000 Transportation In, $450 Purchases, $12,000 Purchases Return
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Date Activities Unit Acquired at Cost Units Sold at Retail Jan.
- A company sells a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: January 1: Beginning balance of 18 units at $13 each Janua
- A company made the following merchandise purchases and sales during the month of May: There was no beginning inventory. a) If the company uses the LIFO periodic inventory method, then what would be
- A company sells a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows: January 1 Beginning balance of 18 units at $13 each January
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan.
- Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information: Account Debit Credit Merchandise inventory, 7/1/15 33,90
- A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 290 units. 130 units remain in ending inventory on January 31. Units Unit
- The following are selected 2017 transactions of Sheffield Corporation. Sept. 1 Purchased inventory from Encino Company on account for $37,600. Sheffield records purchases, gross and uses a periodic inventory system. Oct. 1 Issued a $37,600, 12-month, 8% n
- Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory $40,800
- Nix'it Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'it uses the perpetual inventory system). Merchandise inventory ......
- The following are selected 2017 transactions of Stellar Corporation. Sept. 1 Purchased inventory from Encino Company on account for $58,800. Stellar records purchase gross and uses a periodic inventory system. Oct. 1 Issued a $58,800, 12-month, 8% note t
- The following are selected 2017 transactions of Stellar Corporation. Sept. 1 Purchased inventory from Encino Company on account for $58,800. Stellar records purchase gross and use a periodic inventory system. Oct. 1 Issued a $58,800, 12-month, 8% note to
- A company had the following purchases and sales during its first year of operations: On December 31, there were 26 units remaining in ending inventory. Using the Periodic LIFO in goods sold? (Assume a
- The following are selected 2017 transactions of Flounder Corporation. Sept. 1 Purchased inventory from Encino Company on account for $37,400. Flounder records purchase gross and use a periodic inventory system. Oct. 1 Issued a $37,400, 12-month, 8% note
- Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system). Merchandise inventory $ 45,80
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. (For specific identification, units sold consist of 600 units fro
- AAA Co. uses a periodic inventory system and has the following information in regard to its inventory: Beginning inventory 350 units @ 14 $4,900 Purchase on January 25 450 units @ 15 6,750 Purchase o
- Aloha Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. (For specific identification, the May 9 sale consisted of 80 units f
- Go Tro uses a periodic inventory system. 1. At the beginning of the January 2017, inventory consisted of 2,000 units costing $8 each. 2. On January 10, 4,500 units were purchased costing $9 each. 3. F
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 201 purchases and sales transactions Jan. 1 Beginning inventory, Units Acquired at Cost: 600 units @ $45
- Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 100 $10.10 5/5 Purchase 200 $11.15 5/15 Purchase 300 $13.00 5/25 Purcha
- Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $10 5/5 Purchase 200 $12 5/15 Purchase 300 $15 5/25 Purchase 150 $1
- Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $10 5/5
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. Alpha prepares monthly in
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on the periodic system. On January 1, 2016, beginning inventory consisted of 325 units of widgets costing $10 each. Alpha prepares monthl
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on the periodic system. On January 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. Alpha prepares monthl
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. The value of inventory is based on the periodic system. On January 1, 2016, beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthl
- Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under the average-cost method. Assume the periodic inventory system is used. January 1: Beginning inventory of 150 items at $6 A
- At the end of January 2011, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Transactions Units Amount Inventory, January 1, 2011 500 $2,500 Purchase, January 12 600 3,600 Purchase, January 26 160 1,280 S
- Tahoe Ski Company uses the perpetual inventory system and the gross method of accounting for purchases. The company had the following transactions during January. January 6: Purchased $4,000 of inve
- CCO Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for April. Date Activities Units Acquired at Cost Units Sold at Retail Apr. 1 Beginning inventory 15 units @ $ 3,000/unit Apr. 6 Purchase 35 un
- On September 1, Snow Supply had an inventory of 15 backpacks at a cost of $25 each. The company uses a perpetual inventory system. During September, the following transactions and events occurred. Assuming a periodic inventory system. Sep. 4 Purchased 50
- The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system: Date Activities Units Acquired at Cost Cost per Unit Unit
- Sellings & Sons Company, which uses a periodic inventory system, shows the following at the year ending on December 31, 2013. Purchase Discounts $5,600 Freight-in 7,800 Purchases 200,010 Beginning Inventory 33,500 Ending Inventory 28,800 Purchase Returns
- The following are selected 2017 transactions of Blue Corporation. Sept.1 Purchased inventory from Encino Company on account for $44,800. Blue records purchase gross and uses a periodic inventory system. Oct. 1 Issued a $44,800, 12-month, 8% note to Encin
- Aliira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2013 is available: Determine the inventory balance Altir
- Nix It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix It uses the perpetual inventory system). Merchandise inventory $34,800 Sales returns and allowances $3,500 T. Nix, Capital
- Alpha Company uses the periodic inventory system and had the following inventory & sales
- Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information: Account Debit Credit Merchandise inventory, 7/1/15 32,300 Sales 383,000 Sales returns 12,300 Purchases 243,000 P
- Digital Enterprises uses a perpetual inventory system and has the following data available from inventory, purchases, and sales for the month of January. Jan. 01: Beginning Inventory of 110 units at $4.83 Jan. 07: Purchase of 460 units at $5.33 Jan. 16: S
- Assuming a periodic inventory system, compute the cost of goods sold during the year and the ending inventory in dollars under the LIFO method. The records at the end of 2015 for the Flagstaff Company showed the following for the one item they sell: | |D
- Montour company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions: Date Activities Units Acquired at Cost Units Sold at Retail Jan 1
- Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost $12 each. During the month, the company made two purchases: 3,000 units a
- Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 4,800 units that cost $12 each. During the month, the company made two purchases: 2,000 units a
- Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at
- Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. Beginning inventory, January 1, 2011 600 units @ $80 each Purchases: January 15 1,000 units @ $95 each
- The following are selected 2017 transactions of Cane Corporation. Sep. 1 Purchased inventory from Encino Company on account for $55,600. Crane records purchases gross and use a periodic inventory system Oct. 1 Issued a $55,600, 12 months, 8% note to Encin
- A company reported the following purchases and sales data for December. The company uses a perpetual inventory system. Determine the cost of goods sold for December, using FIFO, LIFO, and Weighted Average methods.
- Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Sales were 525 units at $20. Using the FIFO method, determine the dollar va
- Assuming a periodic inventory system, compute the cost of goods sold during the year and the ending inventory in dollars under the FIFO method. The records at the end of 2015 for the Flagstaff Company showed the following for the one item they sell: | |D
- A company had the following purchases during the current year: January 16 units at $120 February 26 units at $130 May 21 units at $140 September 18 units at $150 November 16 units at $160 On December 31, there were 41 units remaining in ending inventory.
- Star Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, 2011 2,000 $5 For the year 2012:
- A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 360 units. Units Unit Cost Beginning inventory on January 1 320 $6.00 Purchase on January 9 85 6.40 Purchase on January 25 110 6.6
- Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of $6,450,000. Ranns engaged in the following transactions during the year: 1. Purchased me
- Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of 6,450,000. Ranns engaged in the following transactions during the year: 1. Purchased mer
- Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price May 1 Beginning Inventory 100 $10.10 May 5 Purchase 200 $11.00 May 15 Purchase 300 $13.00 May 25
- Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system)
- Company A is a retailer selling unique hardware. Company A uses a perpetual inventory system. Journalize the following transactions: On July 5, Company A purchases inventory for sale from Company B fo
- Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: Aug. 1 Inventory on hand-3,000 units; cost $7.10 each. 8 Purchased 15,000 units for $6.50 each. 14 Sold
- JEN uses the periodic inventory method and had the following inventory events during January: Date Units Purchased Unit Cost Date Units Sold Unit Sales Price Jan. 1 150
- Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under the LIFO method. Assume the periodic inventory system is used. January 1: Beginning inventory of 150 items at $6 April 1:
- Nevins Company uses a periodic inventory system. During November, the following transactions occurred: Date Transaction Units Cost/Unit November 1 Balance 500 $3.50 8 Sale 350 13 Purchase 300 4.00 2
- Wamerwoods Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Be
- Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system. Beginning inventory, January 1, 2018 750 units @
- Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: Aug. 1 Inventory on hand-3,000 units; cost $7.10 each. 8 Purchased 15,000 units for $6.50 each. 14 Sold 1
- Effie Company uses a periodic inventory system. Details for the inventory account for the month of January 2013 are as follows: Units Per unit price Total Balance, 1/1/13 200 $5 $1,000 Purchase, 1/15/13 100 $5.30 $530 Purchase, 1/28/13 100 $5.50 $550 An