Under periodic inventory system, freight-in on merchandise purchases should be charged to the * Inventory account Purchases account Freight in account Supplies Account
Q: Under a perpetual inventory system, what are the four inventory costing methods and how does each…
A: The four inventory costing methods are: Specific identification FIFO (First-In, First-Out), LIFO…
Q: All descriptions reveal the characteristics of a periodic inventory system, EXCEPT: Merchandise…
A: The correct option is: Inventory record is always up-to-date
Q: Max Company has chosen to use an allowance account. When the cost of goods sold method is used with…
A: Full form of NRV is Net Realizable Value.
Q: Which of the following is the correct journal entry for a return of goods that were purchased on…
A: As periodic inventory system purchases and sales are used instead of merchandise inventory.
Q: Under the perpetual inventory system, the journal entry to record the freight paid by the seller on…
A: Under perpetual inventory system, inventory account is used instead of purchases account. For every…
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A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…
Q: Under the periodic inventory system, the journal entry to record the cost of merchandise sold at the…
A: Periodic inventory system: The method or system of recording the transactions related to inventory…
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A: Periodic inventory is a system of inventory valuation where the business’s inventory and cost of…
Q: hich of the following accounts is unique to a merchandising entity that uses the periodic inventory…
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Q: The proper journal entry to record the receipt of inventory purchased on account in a periodic…
A: Periodic inventory system: The method or system of recording the transactions related to inventory…
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A: One of the main feature of periodic system of inventory is all the adjustments are made at end of…
Q: Mcq In a perpetual inventory system, the amount of the discount allowed for paying for merchandise…
A: Perpetual inventory system is an inventory system in which all transactions related to inventory are…
Q: Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry…
A: Inventory system of book keeping means where proper books of account relating to inventory has been…
Q: What account is debited when recording the payment of freight in when using the periodic inventory…
A: Definition:
Q: Listed below are several terms and phrases associated with inventory measurement. Pair each item…
A: FIFO : First-in-first-out LIFO : Last-in-first-out Gross method : The sales / purchases are recorded…
Q: When granting a sales allowance, is there a return of merchandise inventory from the customer?…
A: Sales allowance is an allowance where reduction in reduction in selling price is granted to customer…
Q: The two main inventory accounting systems are the a. perpetual and periodic. b. purchase and sale.…
A: Purchase and sale are the transaction made by the company. It is not an inventory system. Returns…
Q: Amex Stores should include which of the following items in its inventory at the statement of…
A: solution concept we should always consider the following points while valuing the inventory goods…
Q: Which of the following accounts will not be found in the cost of merchandise sold section of the…
A: Income statement: The income statement is a financial statement that shows the net income earned or…
Q: What account is debited when recording the adjusting entry to write down merchandise inventory under…
A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…
Q: When merchandise purchased on account is returned under the perpetual inventory system, the buyer…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…
A: Perpetual inventory system: It is a method of inventory management that records real time…
Q: Assuming a periodic inventory system is used, the journal entry to record the purchase of…
A: Let's understand some basics Merchandise is the term used to refer to any goods purchased for the…
Q: Which account will be debited to record the purchase of merchandise on credit under periodic…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Detailed records of goods held for resale are maintained under a a. perpetual inventory system. b.…
A: Goods available for sale are known as inventory.it is held by the business entity in their stores…
Q: The two main inventory accounting systems are the Perpetual and periodic. purchase and sale.…
A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…
Q: Using a perpetual system, the entry to record the sale of merchandise on account includes a a.…
A: Step 1: The sale of merchandise on account simply means that the goods have been sold on credit.…
Q: What accounts are used to recognize a retailer's purchase from a manufacturer on credit? Assume the…
A: Perpetual inventory system is a method under which the movement of inventory is recorded at…
Q: Describe the journal entry(ies) when recording a sale of inventory using the periodic inventory…
A: In a periodic Inventory system, the entries are made in the system at the end of the accounting…
Q: 31. Under a perpetual inventory system, a.a physical count is required to determine cost of…
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
Q: Under a periodic inventory system Oa. accounting records continuously disclose the amount of…
A: Periodic inventory is a system of inventory in which updates are made on a periodic basis.
Q: Presented below are transactions related to Sheridan, Inc. Sheridan uses the periodic inventory…
A: CASH DISCOUNT IS THE DEDUCTION GIVEN BY THE SELLER OF THE GOODS OR PROVIDER OF SERVICES TO ENCOURAGE…
Q: A perpetual inventory system will always give updated balances for: Goods Available for Sale and…
A: Perpetual inventory system is a type of inventory system in which all transactions related to…
Q: Under a perpetual inventory system, what are the four inventory costing methods and how does each…
A: Definition:
Q: Using a perpetual inventory system, the entry to record the sale of merchandise on account includes…
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
Q: Required: Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending…
A: FIFO is first in first out inventory valuation method in which inventories which are purchased first…
Q: Under the periodic inventory system, the journal entry to record the purchase of merchandise…
A: Periodic inventory system: The method or system of recording the transactions related to inventory…
Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…
A: Definition: Perpetual inventory: Under the perpetual inventory system, each transaction for the…
Q: The Esquire Company employs a periodic inventory system. Indicate the effect (increase or decrease)…
A: Periodic Inventory System: Under this system, the balance of the merchandise inventory is not…
Q: In the periodic inventory system, all purchases of merchandise during the period is recorded on what…
A: There are two type of inventory systems in the business. One is perpetual inventory system and other…
Q: when taking inventory all merchandise held on consignment is _______
A: In a contract of consignment, there are two parties in which one is consignor and consignee.…
Q: The Cloud Company employs a perpetual inventory system and the McKenzie Corporation uses a periodic…
A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…
Q: The journal entry to record the payment of freight cost under the perpetual inventory system is as…
A: Given transaction is: Payment of freight cost under the perpetual inventory system
Q: Under the periodic inventory system, the Purchases account is used to record: a. purchases of any…
A: The periodic inventory system records the cost of goods sold at the end of reporting period instead…
Q: Which account will be debited to record the Sale of merchandise on credit under periodic inventory…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: What are the two journal entries involved when recording the sale of inventory when using the…
A: Perpetual inventory system refers to the inventory system that maintains the detailed records of…
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- Record general journal entries to correct the errors described below. Assume that the incorrect entries were posted in the same period in which the errors occurred and were recorded using the periodic inventory system. a. A freight cost of 85 incurred on equipment purchased for use in the business was debited to Freight In. b. The issuance of a credit memo to Lang Company for 119 for merchandise returned was recorded as a debit to Purchases Returns and Allowances and a credit to Accounts Receivable, Lang Company. c. A cash sale of 68 to J. L. LaSalle was recorded as a sale on account. d. A purchase of merchandise from James Company in the amount of 750 with a 25 percent trade discount was recorded as a debit to Purchases and a credit to Accounts Payable of 750 each.A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods soldWhich of the following is true about the Sales Returns and Allowances account? a. It is used to record the sale of merchandise. b. It is used to record the reduction of inventory. c. It is a contra account, deducted from sales. d. It is used to record discounts for prompt payment. e. None of the above.
- This type of inventory system does not require an entry to Merchandise Inventory until a physical inventory has been taken. a. Periodic inventory system b. Perpetual inventory system c. Merchandise inventory system d. Beginning inventory system e. Ending inventory systemA retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty inventory parts. Which of the following represents the journal entry for this transaction if the retailer has already remitted payment? A. B. C.A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
- A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods soldPerpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.Merchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross profit Net sales Sales revenue Cost of goods available for sale Cost of goods sold Perpetual system Periodic system Transportation-In Purchases FOB destination point FOB shipping point Gross profit ratio An adjunct account used to record freight costs paid by the buyer. A system in which the Inventory account is increased at the time of each purchase and decreased at the time of each sale. Terms that require the seller to pay for the cost of shipping the merchandise to the buyer. Terms that require the buyer to pay for the shipping costs. A system in which the Inventory account is updated only at the end of the period. Beginning inventory plus cost of goods purchased. An account used in a periodic inventory system to record acquisitions of merchandise. Sales revenue less sales returns and allowances and sales discounts. Cost of goods available for sale minus ending inventory. Gross profit divided by net sales. Net sales less cost of goods sold. The cost of unfinished products in a manufacturing company. The account wholesalers and retailers use to report inventory held for sale. The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. A manufacturers inventory that is complete and ready for sale. A representation of the inflow of assets from the sale of a product.
- Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?For each of the following accounts, identify whether the normal balance is a debit or a credit. Also specify whether the account is a contra account. a. Sales Returns and Allowances b. Merchandise Inventory c. Sales d. d Freight In e. Purchases Returns and Allowances f. Sales Tax Payable g. PurchasesWhat is the difference in reporting requirements for customer-returned merchandise in sellable condition under a perpetual inventory system versus a periodic inventory system?
