Roley Corporation uses a periodic inventory system and the gross method of accounting for...

Question:

Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Roley purchased $82,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freight costs of $1,510. On July 3, Roley returned damaged goods and received a credit of $8,200. On July 10, Roley paid for the goods.

Prepare all necessary journal entries for Roley.

Periodic Inventory:

The companies that follow the periodic inventory valuation method will update the inventory at the end of the financial year to determine the cost of goods sold as well as the value of the ending inventory.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

DateParticularsDebitCredit
Jul. 1Purchases82,000
Accounts payable 82,000
Freight1,510
Cash 1,510
Jul. 3Accounts payable8,200
Purchase returns ...

See full answer below.


Learn more about this topic:

Loading...
Periodic Inventory System: Definition, Advantages & Examples

from

Chapter 1 / Lesson 14
11K

Explore the periodic inventory system. Learn the definition of the periodic inventory system and understand its advantages. See periodic inventory system examples.


Related to this Question

Explore our homework questions and answers library