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  • Problem-10-4 Final

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    Alyssa Faith Niangar
    14 views2 pages
    The document compares a periodic inventory system to a perpetual inventory system. It shows journal entries for purchases, returns, sales, and payments under each system. The perpetual system continuously updates inventory balances with each transaction, while the periodic system only updates inventory at the end of each period during a physical count. It also provides beginning balances, transactions, and ending inventory calculations to require reconciling inventory under each method.

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    Problem-10-4 final

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    The document compares a periodic inventory system to a perpetual inventory system. It shows journal entries for purchases, returns, sales, and payments under each system. The perpetual system continuously updates inventory balances with each transaction, while the periodic system only updates inventory at the end of each period during a physical count. It also provides beginning balances, transactions, and ending inventory calculations to require reconciling inventory under each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    14 views2 pages

    Problem-10-4 Final

    Uploaded by

    Alyssa Faith Niangar
    The document compares a periodic inventory system to a perpetual inventory system. It shows journal entries for purchases, returns, sales, and payments under each system. The perpetual system continuously updates inventory balances with each transaction, while the periodic system only updates inventory at the end of each period during a physical count. It also provides beginning balances, transactions, and ending inventory calculations to require reconciling inventory under each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Periodic System Perpetual System

    Purchase 800,000 Merchandise Inventory


    Accounts Payable 800,000

    Accounts Payable 50,000 Accounts Payable


    Purchase Return 50,000

    Accounts Payable 600,000 Accounts Payable


    Cash 600,000

    Accounts Receivable 1,580,000 Accounts Receivable


    Sales 1,580,000

    Sales Return 40,000 Cost of Sale


    Accounts Receivable 40,000

    Cash 1,360,000 Sales Return


    Accounts Recivable 1,360,000

    Inventory - end 60,000 Merchandise Inventory


    Income Summary 60,000

    Cash

    Inventory Shortage

    REQUIREMENT B
    Periodic System Perpetual System

    Beginning Inventory 90,000 Cost of Sales 770,000


    Purchases 800,000 Inventory Shortage 10,000
    Purcahse Returns -50,000 Adjusted Cost of Sales 780,000
    Goods availble for Sale 840,000
    Ending Inventory -60,000
    Cost of sales 780,000
    Perpetual System

    Merchandise Inventory 800,000


    Accounts Payable 800,000

    Accounts Payable 50,000


    Merchandise Inventory 50,000

    Accounts Payable 600,000


    Cash 600,000

    Accounts Receivable 1,580,000


    Sales 1,580,000

    Cost of Sale 790,000


    Merchandise Inventory 790,000

    Sales Return 40,000


    Account Receivable 40,000

    Merchandise Inventory 20,000


    Cost of Sale 20,000

    1,360,000
    Accounts Receivable 1,360,000

    Inventory Shortage 10,000


    Merchandise Inventory 10,000

    Merchandise Inventory per book 70,000


    Physical Count -60,000
    Shortage 10,000

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