Chapter 1 Problem 7-13
Requirement a
Periodic System Perpetual System
1. Purchases 800,000 1. Merchandise inventory 800,000
Accounts payable 800,000 Accounts payable 800,000
2. Accounts payable 50,000 2. Accounts payable 50,000
Purchase returns 50,000 Merchandise inventory 50,000
3. Accounts payable 600,000 3. Accounts payable 600,000
Cash 600,000 Cash 600,000
4. Accounts receivable 1,580,000 4. Accounts receivable 1,580,000
Sales 1,580,000 Sales 1,580,000
5. Sales return 40,000 Cost of sales 790,000
Accounts receivable 40,000 Merchandise inventory 790,000
6. Cash 1,360,000 5. Sales return 40,000
Accounts receivable 1,360,000 Accounts receivable 40,000
7. Inventory-Dec. 31 60,000 Merchandise inventory 20,000
Income summary 60,000 Cost of sales 20,000
(60 x 1,000)
6. Cash 1,360,000
Accounts receivable 1,360,000
7. Inventory shortage 10,000
Merchandise inventory 10,000
Merchandise inventory per book 70,000
Physical count 60,000 Shortage 10,000
Requirement b
Periodic System Perpetual System
Inventory – January 90,000 Cost of sales recorded
Purchases 800,000 (790,000 – 20,000) 770,000
Purchase returns ( 50,000) 750,000 Inventory shortage 10,000
Goods available for sale 840,000 Adjusted cost of sales 780,000
Less: Inventory – December 31 60,000
Cost of sales 780,000
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