FIFO- Perpetual inventory System: FIFO (First in first out) method assumes the flow of inventory in the same order of its purchase. In other words, the oldest purchase is assumed to be sold first in order of purchases made. The FIFO method can be applied using perpetual or periodic method. In the perpetual inventory method, the inventory balance is updated after each inventory transaction. Adjusting entries : Adjusting entries are recorded at the end of each accounting period to adjust the accounts as per accrual basis of accounting. To show: The adjusting entries and their posting into ledgers
FIFO- Perpetual inventory System: FIFO (First in first out) method assumes the flow of inventory in the same order of its purchase. In other words, the oldest purchase is assumed to be sold first in order of purchases made. The FIFO method can be applied using perpetual or periodic method. In the perpetual inventory method, the inventory balance is updated after each inventory transaction. Adjusting entries : Adjusting entries are recorded at the end of each accounting period to adjust the accounts as per accrual basis of accounting. To show: The adjusting entries and their posting into ledgers
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 6, Problem 5CP
To determine
Concept Introduction:
FIFO- Perpetual inventory System: FIFO (First in first out) method assumes the flow of inventory in the same order of its purchase. In other words, the oldest purchase is assumed to be sold first in order of purchases made. The FIFO method can be applied using perpetual or periodic method. In the perpetual inventory method, the inventory balance is updated after each inventory transaction.
Adjusting entries: Adjusting entries are recorded at the end of each accounting period to adjust the accounts as per accrual basis of accounting.
To show: The adjusting entries and their posting into ledgers