The following transactions are from Sharper Vision Corporation. Purchased inventory on December 10, 2020, with a list price of $2,250, a trade discount of 20%, and with terms 2/10, n/30. Returned $300 of inventory to the supplier on December 15, 2020. Paid $1,200 cash on account on December 19, 2020. Paid the remaining balance on January 5, 2021. Perpetual inventory system Periodic inventory system a. Prepare journal entries for the transactions 1 through 4, assuming that the company uses the perpetual inventory system and the gross method for recording purchase discounts.
The following transactions are from Sharper Vision Corporation. Purchased inventory on December 10, 2020, with a list price of $2,250, a trade discount of 20%, and with terms 2/10, n/30. Returned $300 of inventory to the supplier on December 15, 2020. Paid $1,200 cash on account on December 19, 2020. Paid the remaining balance on January 5, 2021. Perpetual inventory system Periodic inventory system a. Prepare journal entries for the transactions 1 through 4, assuming that the company uses the perpetual inventory system and the gross method for recording purchase discounts.
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 5E: Perpetual versus Periodic Inventory Systems Howard, Inc. is a merchandising company that began...
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Perpetual and Periodic Systems—Recording Inventory-Related Entries using the Gross Method
The following transactions are from Sharper Vision Corporation.
- Purchased inventory on December 10, 2020, with a list price of $2,250, a trade discount of 20%, and with terms 2/10, n/30.
- Returned $300 of inventory to the supplier on December 15, 2020.
- Paid $1,200 cash on account on December 19, 2020.
- Paid the remaining balance on January 5, 2021.
- Perpetual inventory system
- Periodic inventory system
a. Prepare
Date | Account Name | Dr. | Cr. |
---|---|---|---|
Dec. 10, 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer | |
Dec. 15, 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer | |
Dec. 19, 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer | |
Cash | Answer | Answer | |
Jan. 5, 2021 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
Please answer all parts of the question.
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