Differentiate between periodic inventory system and perpetual inventory system from an accounting point of view.
a. Differentiate between periodic inventory system and perpetual inventory system from an accounting point of view.
b. Amanda Wholesale Company purchases merchandise from a variety of manufactures and
sells the merchandise to a variety of retailers. The following transactions occurred during
February 2020:
Feb. 2. Purchased $7,600 of merchandise from Zenith manufacturing; terms are
1/10, n/30.
5. Paid $270 freight on February 2 purchase.
11. Paid Zenith for the February 2 purchase.
13. Purchased $5,000 of merchandise of Forbes Manufacturing; terms are 2/10, n/4.
16. Received a $300 allowance (purchases return) for returned items on the February 13 purchase since some of the merchandise was the wrong size.
17. Purchased $4,200 of merchandise from Toddler industries; terms are 2/10, n/30
20. Sold merchandise with a list price of $4,000 ($2,200 cost) to valley mart.
22. Valley mart returned 20% of the merchandise from the February 20 sales.
23. Paid Forbes manufacturing for the February 13 purchase.
28. Paid Toddler industries for the February 17 purchase.
REQUIRED: Show the
the month under both Perpetual Inventory System and Periodic Inventory System.
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