PARRISH 7-1 THIRD TIME ASKING QUESTION!!!!! (This is not too complex!) The answers I need is how the following transactions are recording in the Periodic Method and the Perpetual Method. Please provide the answers and explain if you can why the transactions were recorded the way they were and why the accounts used in your answer were chosen. New Sales Company 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. 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 not 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 method5/6 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 not ordered and could not be used. New sales returned the items, and the supplier reduced the amount owed. 5/26 Paid the supplier amount owed
PARRISH 7-1 THIRD TIME ASKING QUESTION!!!!! (This is not too complex!)
The answers I need is how the following transactions are recording in the Periodic Method and the Perpetual Method. Please provide the answers and explain if you can why the transactions were recorded the way they were and why the accounts used in your answer were chosen.
New Sales Company 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.
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 not 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
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 not ordered and could not be used. New sales returned the items, and the supplier reduced the amount owed.
5/26 Paid the supplier amount owed
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