Question: A company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 9, 2021, for $56,000 and then sells this inventory on account on March 7, 2021, for $79,000. Record the transactions for the purchase and sale of the inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 1. Record the purchase of inventory on account. 2. Record the sale of inventory on account. 3. Record the cost of inventory sold.
Question: A company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 9, 2021, for $56,000 and then sells this inventory on account on March 7, 2021, for $79,000. Record the transactions for the purchase and sale of the inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 1. Record the purchase of inventory on account. 2. Record the sale of inventory on account. 3. Record the cost of inventory sold.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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Transcribed Image Text:Question: A company uses a perpetual system to record inventory transactions. The
company purchases inventory on account on February 9, 2021, for $56,000 and then
sells this inventory on account on March 7, 2021, for $79,000.
Record the transactions for the purchase and sale of the inventory. (If no entry is
required for a particular transaction/event, select "No Journal Entry Required" in the
first account field.)
1. Record the purchase of inventory on account.
2. Record the sale of inventory on account.
3. Record the cost of inventory sold.
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