Super Copy Co. is an office supply store. The company uses a perpetual inventory system, records...
Question:
Super Copy Co. is an office supply store. The company uses a perpetual inventory system, records purchases at net cost, and records sales revenue at full invoice price.
Record the following transactions in the company's general journal. To conserve space, omit the written explanations which normally should accompany the entries.
July 1 Purchased four Doni copying machines on account from Doni Corp. Total invoice price was $3,000 per machine ($12,000 total); terms of 3/10, n/30. These machines are intended for resale.
3 Found one of the Doni copiers to be defective and returned it to Doni, thus reducing the amount owed.
9 Sold one of the Doni copiers to Cross Realty. The sales price was $6,000, terms 5/10, n/60.
10 Paid the remaining amount owed to Doni Corp., less the allowable discount.
19 Received full payment from Cross, less the allowable discount.
Perpetual Inventory System:
"Perpetual Inventory System" is the more complex method as compared to periodic inventory system. Under this method the continuous track record of inventory is maintained.This method more advance as compared to periodic inventory system.
Answer and Explanation: 1
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View this answerJournal entries in the company's general journal are as follows:
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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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