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Under a perpetual inventory system acquisition of merchandise for resale is debited to?
Merchandise Inventory account
What is merchandise inventory system?
Merchandise inventory:
When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting what?
inventory
When merchandise is returned under the perpetual inventory system the buyer would credit a. Accounts Payable b. Merchandise Inventory c. Purchases Returns and Allowances...?
The Buyer would likely perform the following transaction: DR- Account Receivable CR - Merchandise Inventory The Buyer would probably debit CASH if they receive CASH from the Seller instead of having to WAIT on it. The Merchandise Seller would perform the following transaction: DR - Merchandise Inventory CR - Accounts Payable, OR CASH
Under a perpetual inventory system acquisition of merchandise for resale is debited to?
Merchandise Inventory account
What is merchandise inventory system?
Merchandise inventory:
When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting what?
inventory
When merchandise is returned under the perpetual inventory system the buyer would credit a. Accounts Payable b. Merchandise Inventory c. Purchases Returns and Allowances...?
The Buyer would likely perform the following transaction: DR- Account Receivable CR - Merchandise Inventory The Buyer would probably debit CASH if they receive CASH from the Seller instead of having to WAIT on it. The Merchandise Seller would perform the following transaction: DR - Merchandise Inventory CR - Accounts Payable, OR CASH
When the perpetual inventory system is used the inventory sold is shown on the income statement as?
cost of merchandise sold.
An account used in the perpetual inventory system that is not used in the periodic inventory system is?
Purchases
What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
When using the periodic inventory system the first closing entry will include a?
debit to the inventory account equal to the physical inventory amount.
The periodic inventory system is used most commonly by companies that sell?
low priced high volume merchandise
Is periodic inventory system used most by companies that sell low or high volume merchandise?
high volume, low cost
What are the accounting journal entries to record the adjusting entry in a periodic system with an ending inventory of 15000 and a starting inventory of 20000?
Debit inventory expenses 5000Credit inventory account 5000
