MODULE 5 INVENTORY PERPETUAL Please envision the following transactions. Please 1) Show how each would be recoreded and 2) explain the reason. I appreciate your help and answers. 1) Sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer. 2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240. 3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer 4) Gnu Company uses the perpetual method of recording inventory. Its records show Inventory on hand of $15,889. A count of the inventory, however, finds only $14,278 of inventory on hand. Record the entry needed by Gnu to correct its records. 5) George, Inc. uses the perpetual method of recording inventory. Its records show Inventory on hand of $105,773. A count of the inventory, however, finds only $98,200 of inventory on hand. Record the entry needed by George to correct its records. Assume an amount over 5% of total inventory would be considered material
MODULE 5 INVENTORY PERPETUAL
Please envision the following transactions. Please 1) Show how each would be recoreded and 2) explain the reason. I appreciate your help and answers.
1) Sold inventory that had cost us $800 for $1,000 on account to Smith. Freight to get the merchandise to our customer was paid by the customer.
2) Accepted a return of merchandise from the June 7 sale to Smith that was the wrong size for the customer. We had sold the merchandise for $300; our cost was $240.
3) Shipped merchandise that had cost us $940 to Jones. New Stuff billed the customer $1,175 on the sale and paid $25 in freight to get the merchandise to the customer
4) Gnu Company uses the perpetual method of recording inventory. Its records show Inventory on hand of $15,889. A count of the inventory, however, finds only $14,278 of inventory on hand. Record the entry needed by Gnu to correct its records.
5) George, Inc. uses the perpetual method of recording inventory. Its records show Inventory on hand of $105,773. A count of the inventory, however, finds only $98,200 of inventory on hand. Record the entry needed by George to correct its records. Assume an amount over 5% of total inventory would be considered material
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