Prepare journal entries, including adjustments to record the above transactions assuming the company uses periodic system and perpetual system b. Determine the cost of sales under each inventory system.
Sunstar Company is a wholesaler of car seatcovers. At the beginning of the current year, the entity's inventory consisted of 90 car seatcovers priced at P1,000 each. During the current year, the following events occurred;
1. Purchased 800 car seatcovers on account at P2,000 each
2. Returned 50 defective car seatcovers to supplier and received credit.
3. Paid 600 of the car seatcovers purchased
4. Sold 790 car seatcovers at P2,500 each.
5. Received 30 car seat covers returened by a customer and gave credit. The goods were in excellent condition.
6. Received cash for 680 of the car seatcovers sold
7. Physical count at year-end revealed 60 units on hand.
Required;
a. Prepare
b. Determine the cost of sales under each inventory system.
Sunstar Company is a wholesaler of car seatcovers. At the beginning of the current year, the entity's inventory consisted of 90 car seatcovers priced at P1,000 each. During the current year, the following events occurred;
1. Purchased 800 car seatcovers on account at P2,000 each
2. Returned 50 defective car seatcovers to supplier and received credit.
3. Paid 600 of the car seatcovers purchased
4. Sold 790 car seatcovers at P2,500 each.
5. Received 30 car seat covers returened by a customer and gave credit. The goods were in excellent condition.
6. Received cash for 680 of the car seatcovers sold
7. Physical count at year-end revealed 60 units on hand.
Required;
a. Prepare journal entries, including adjustments to record the above transactions assuming the company uses periodic system and perpetual system
b. Determine the cost of sales under each inventory system.
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