Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000 and then sells this inventory on account on March 17 for $60,000. Record transactions for the purchase and sale of inventory.

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A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Discount on Payment  = Total amount due x discount rate = $40,000 x 3% = $1,200

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A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On September 12, Vander Company sold merchandise in the amount of $7,600 to Jepson Company, with…

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Q: A company has the following transactions during March: March 3 Purchases inventory on account for…

A: Solution Concept Under perpetual inventory system the inventory records is updated regularly This…

Q: Selected information from the statement of financial position of ERNESTO Company at November 30 and…

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A: In Periodic inventory , the beginning inventory balance is written off by  debiting it  to income…

Q: On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with…

A: Periodic inventory method: It is a inventory valuation method in which inventory is updated at the…

Q: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…

A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300

Q: Gingerbread, Corp. presents the following information for inventory purchases and sales throughout…

A: "Periodic" means that the Inventory account is not routinely updated during the accounting period.…

Q: Bonita Company’s record of transactions for the month of April was as follows. Purchases   Sales…

A: Perpetual inventory system is that inventory system, in which inventory records are updated at the…

Q: a ccompany purchased $1,800 of merchandise on July 5, with terms 2/10, n/30. On july 7. it returned…

A: Discount on payment = (Purchases - purchase return) x discount rate = (1800-200)*2% = $32

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage indicates loss of inventory by normal wear and tear e.g. due to evaporation in…

Q: company purchased inventory for $1,400 per unit. The company later sold one unit of the inventory…

A: There are two method of inventory management: Perpetual Inventory System and Periodic Inventory…

Q: Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased $100,000 of…

A: 1/15 net 45 means 1% discount is allowed if payment is made within 15 days. If payment after 45 days…

Q: Givoly Inc. uses a periodic inventory system. At the end o the accounting records provided the…

A:

Q: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…

A: The cost of goods sold(COGS) comprises all the direct expenses such as direct material, direct…

Q: Riverbed Company had the following account balances at year-end: Cost of Goods Sold $62,380,…

A: Perpetual Inventory System: Perpetual inventory systems are programs that continually estimate your…

Q: Intercontinental, Inc., uses a perpetual inventory system. Consider the following information about…

A: FIFO method: FIFO stands for First In First out. Under this method, the units purchased first are…

Q: A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account…

A: A perpetual inventory system seems to be an application that constantly assesses your inventory…

Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the…

A: Purchase amount net of discount = P20,000 - 2%  = P19,600

Q: A company that uses the perpetual inventory system purchases inventory for P65,000 on account, with…

A: Under perpetual inventory system, discount under terms is accounted for as adjusting to Inventory…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Given information is: Shankar Company uses a perpetual system to record inventory transactions. The…

Q: The following transactions are for Blossom Company. 1.   On December 3, Blossom Company sold…

A: Inventory refers to the stock that the company held for the resale purpose or the goods that are not…

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A: Periodic inventory system: Periodic inventory system is a system, in which the inventory is updated…

Q: Polk Company uses a perpetual inventory system and had the following transactions during November:…

A: Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit…

Q: On July 1, Hernandez, Inc. purchased merchandise for $2,500, with terms of 1/10, n/30. On July 5,…

A: Journal Entry: It is the method involved with making records of any exchanges either monetary or…

Q: Klump Co. uses a perpetual inventory system and had the following inventory transactions for the…

A: LIFO: Last-In First Out:- As per LIFO method, units purchased last are sold first. Under perpetual…

Q: Black Hawk, Inc., uses a perpetual inventory system and maintains an inventory record of each type…

A: As per the FIFO method, the COGS is determined based on first-come, first sold. It records the…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: Perpetual method:-  Under the perpetual system the Inventory account is constantly (or perpetually)…

Q: 3 different parts

A: Prepare journal entry for purchases of inventory.

Q: Mathis Company and Reece Company use the perpetual inventory system. The following transactions…

A: The question is based on the concept of Financial Accounting.

Q: At year-end, the perpetual inventory records of Blue Company showed merchandise inventory of…

A: Perpetual inventory system is the system in which transaction to purchase and sale of goods are…

Q: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…

A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…

Q: Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Closing entries are reported in the books to close the temporary accounts such as expenses and…

Q: Piere Imports uses the perpetual system in accounting for merchandise inventory and had the…

A: Introduction Inventory and methods: Inventory is the goods and material a business holds for sale.…

Q: On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Closing Entry: Closing entries are passed at the end of accounting period to close the balances of…

Q: On December 22, Travis Company purchased merchandise on account from a supplier for $13,200, terms…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Teal Mountain, Inc. uses a perpetual inventory system. Its beginning inventory consists of 200 units…

A: Account Titles and Explanation   Debit   Credit        Inventory (225 units * $220) $49,500…