PERIODIC

SYSTEM
DATE PARTICULARS F DEBIT CREDIT
20XX
1) Purchases 800,000
Accounts payable (800*1000) 800000

To record purchase of car

seatcovers on account.

2) Accounts payable (50*1000) 50000

Purchase return 50000

To record returned defective

car seatcovers to supplier.

3) Accounts payable 600000

Cash (600*1000) 600000
To record payment of 600
purchased car seatcovers.

4) Accounts receivable (790*2000) 1580000

Sales 1580000
To record sale of car
seatcovers.

5) Sales return 40000

Accounts receivable (20*2000) 40000

To record returned car

seatcovers by customer.

6) Cash 1360000
Accounts receivable
1360000
(680*2000)

To record received payment

for 680 car seatcovers.

Merchandise inventory- end

7) 60000
(60*1000)
Income summery 60000
 To record adjustment of
ending inventory.

PERPETUAL
SYSTEM
1) Merchandise inventory 800000
Accounts payable (800*1000) 800000
To record purchase of car
seatcovers on account.

2) Accounts payable (50*1000) 50000

Merchandise inventory 50000

To record returned defective

car seatcovers to supplier.

3) Accounts payable 600000

Cash (600*1000) 600000
To record payment of 600
purchased car seatcovers.

4) Accounts receivable (790*2000) 1580000

Sales 1580000
To record sale of car
seatcovers.

Cost of goods sold (790*1000) 790000

Merchandise inventory 790000
To record outflow of
merchandise inventory.

5) Sales return 40000

Accounts receivable (20*2000) 40000
To record returned car
seatcovers by customer.

Merchandise inventory (20*1000) 20000

Cost of goods sold 20000
To record inflow of
merchandise inventory.

6) Cash (680*2000) 1360000

Accounts receivable 1360000
 To record received payment
for 680 car seatcovers.

7) Inventory Shortage 10000

Merchandise inventory 10000
To record adjustment for
shortage of ending inventory.

Merchandise inv. per book

70000
(70*1000)
Physical count (60*1000) -60000
Inventory Shortage 10000

Req. b PERIODIC SYSTEM PERPETUAL SYSTEM

Cost of goods sold (790000-

Beginning inventory 90000
20000)
Purchases (800*1000) 800000 Inventory shortage
Purchase return (50*1000) -50000 Adjusted cost of goods sold
Total goods available for sale 840000
Ending inventory -60000
Cost of goods sold 780000
770000
10000
780000