Explanation 1. Record the journal entry for the purchase of merchandise on account. Date Account Title and Explanation Post Ref. Debit ($) Credit ($) Purchases 5,000 Accounts Payable 5,000 (To record the purchase of merchandise on account) Table (1) Purchase is an expense and increased by $5,000which decreased the equity. Therefore, debit the purchase account with $5,000. Accounts payable is a liability and increased by $5,000. Therefore, credit the accounts payable account with $5,000. Record the journal entry for the freight charges paid in cash. Date Account Title and Explanation Post Ref. Debit ($) Credit ($) Freight-in 300 Cash 300 (To record the freight charges) Table (2) Freight-in is an expense and increased by $300. Therefore, debit the freight-in account with $300. Cash is an asset and decreased by $300. Therefore, credit the cash account with $300. 2. Record the journal entry for the purchase return: Date Account Title and Explanation Post Ref...

Connect Access Card For Intermediate Accounting

10th Edition

ISBN: 9781260481938

Author: David Spiceland, James Sepe, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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Question

Chapter 8, Problem 8.2E

To determine

Periodic Inventory System: Under this system, the balance of the merchandise inventory is not adjusted when the purchases and sales takes place, rather it is adjusted at the end of a particular period on a periodic basis.

To Prepare: the necessary journal entries to record the given transactions.

Expert Solution & Answer

Chapter 8 Solutions

Connect Access Card For Intermediate Accounting

Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6Q Ch. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8Q Ch. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...

Ch. 8 - Prob. 8.11Q Ch. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13Q Ch. 8 - Prob. 8.14Q Ch. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BE Ch. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - LIFO liquidation LO86 Refer to the situation...Ch. 8 - Prob. 8.11BE Ch. 8 - Perpetual inventory system; journal entries LO81...Ch. 8 - Prob. 8.2E Ch. 8 - Perpetual and periodic inventory systems compared ...Ch. 8 - Prob. 8.5E Ch. 8 - Physical quantities and costs included in...Ch. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Prob. 8.13E Ch. 8 - Prob. 8.14E Ch. 8 - Prob. 8.15E Ch. 8 - Prob. 8.16E Ch. 8 - Prob. 8.19E Ch. 8 - Prob. 8.20E Ch. 8 - Prob. 8.21E Ch. 8 - Prob. 8.23E Ch. 8 - Prob. 8.25E Ch. 8 - Prob. 8.30E Ch. 8 - Prob. 8.31E Ch. 8 - Various inventory transactions; journal entries ...Ch. 8 - Prob. 8.3P Ch. 8 - Prob. 8.4P Ch. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Prob. 8.6P Ch. 8 - Prob. 8.9P Ch. 8 - Prob. 8.16P Ch. 8 - Prob. 8.1DMP Ch. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Prob. 8.4DMP Ch. 8 - Prob. 8.5DMP Ch. 8 - Prob. 8.8DMP Ch. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Communication Case 810 Dollar-value LIFO method ...Ch. 8 - Prob. 1CCTC Ch. 8 - Prob. 2CCTC

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