Stuart Company purchased goods for $84,000 on June 14, under the following terms: 3/10, n/ 30;...
Question:
Stuart Company purchased goods for $84,000 on June 14, under the following terms: 3/10, n/ 30; FOB shipping point, freight collect. The bill for the freight was paid on June 15, $1,200. Stuart Company uses the perpetual inventory method.
Assume that the invoice was paid on June 24, and prepare all entries required on Stuart Company's books.
Assume that the invoice was paid on July 11. Prepare the entry to record the payment made on that date.
Perpetual Inventory Method:
Perpetual Inventory Method is a method used in recording the transactions that affecting the inventory account. Perpetual Inventory Method records a cost of goods sold on the moment a sale is recognized.
Answer and Explanation: 1
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View this answer1. Assume that the invoice was paid on June 24, and prepare all entries required on Stuart Company's books.
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| June 14 | Inv... |
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Perpetual Inventory System: Definition, Advantages & Examples
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Chapter 1 / Lesson 15
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Perpetual 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.
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