Reineman Supply Company uses a periodic inventory system. During April, the following...
Question:
Reineman Supply Company uses a periodic inventory system.
During April, the following transactions and events occurred.
| Sept. 3 | Purchased 80 backpacks at $25 each from Zuzu Company, terms 2/10, n/30; fob destination. |
| Sept. 6 | Received credit of $150 for the return of 6 backpacks purchased on Sept. 3 that were defective. |
| Sept. 9 | Sold 15 backpacks for $42 each to Bailey Books, terms 2/10, n/30; cost of backpacks was $25 each; fob shipping point. |
| Sept. 13 | Paid Zuzu Company in full. |
| Sept. 14 | Granted an allowance to Bailey Books for 5 returned backpacks. |
| Sept. 29 | Received payment from Bailey Books for Sept. 9 sale. |
Journalize the above transactions.
Periodic inventory system
Periodic inventory is a system of inventory in which updates are made on a periodic basis. This differs from perpetual inventory systems, where updates are made as seen fit. In a periodic inventory system no effort is made to keep up-to-date records of either the inventory or the cost of goods sold.
Answer and Explanation: 1
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View this answer| Sept. 3 | Purchased 80 backpacks at $25 each from Zuzu Company, terms 2/10, n/30; fob destination. |
debit Purchases 2,000; credit A/P 2,000
| Sept. 6... |
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