PARRISH 7-1 INVENTORY Please solve the following showing in a 3 column format how each transaction would be recorded. New Sales Compnay has just gone into business and is starting to receive inventory items it has ordered. The problem facing New Sales is that no one knows whether the system to use should be the periodic or perpetual system. Using a 3 column format please do the following a) Record each of the following transactions using the periodic method 5/6 Purchased $5000 of goods on account. The freight charges on the goods were $50. Goods costing $35 were damaged and were returned to the seller; the seller reduced the amount owed by $35 5/9 New Sales found that items costing $95 were nto ordered and could not be used. New Sales returned the items, and the supplier reduced the amount owed. 5/26 Paid supplier the amount owed. b) Record each of the following transactions using the perpetual method in 3 column format 5/6 Purchased $5000 of goods on account. The freight charges on the goods were $50. Goods costing $35 were damaged and were returned to the seller; the seller reduced the amount owed byh $35 5/9 New Sales found that items costing $95 were not ordered and could not be used. New slaes returned the items, and the supplier reduced the amount owed. 5/26 Paid the supplier amount owed
PARRISH 7-1 INVENTORY
Please solve the following showing in a 3 column format how each transaction would be recorded.
New Sales Compnay has just gone into business and is starting to receive inventory items it has ordered. The problem facing New Sales is that no one knows whether the system to use should be the periodic or perpetual system.
Using a 3 column format please do the following
a) Record each of the following transactions using the periodic method
5/6 Purchased $5000 of goods on account. The freight charges on the goods were $50. Goods costing $35 were damaged and were returned to the seller; the seller reduced the amount owed by $35
5/9 New Sales found that items costing $95 were nto ordered and could not be used. New Sales returned the items, and the supplier reduced the amount owed.
5/26 Paid supplier the amount owed.
b) Record each of the following transactions using the perpetual method in 3 column format
5/6 Purchased $5000 of goods on account. The freight charges on the goods were $50. Goods costing $35 were damaged and were returned to the seller; the seller reduced the amount owed byh $35
5/9 New Sales found that items costing $95 were not ordered and could not be used. New slaes returned the items, and the supplier reduced the amount owed.
5/26 Paid the supplier amount owed
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
