PARRISH Pg. 167 INVENTORY Please explain the following as to why the Purchase Allowance and Inventory accounts were credited. Periodic Inventory AP or Cash           10      Purchase Allowances    10 Perpetual Inventory AP or Cash             10             Inventory           10

Q: The value of inventory includes C07 O Purchases + Purchases Returns and Allowances. Purchases +…

A: The value of inventory typically includes the cost of purchases, which refers to the cost of…

Q: Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of…

A: Question is of Last -in, First - out method.  So, when units are sold on September 5, there were…

Q: ) Using a perpetual inventory system, how should a company record the sale of inventory costing $620…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Calculate the missing information for the purchase. Item Selling Price (in $) Sales Tax Rate Sales…

A: Introduction:- The following Formula for purchase price after sales tax as follows:- Purchase price…

Q: 1. Record purchases GROSS OR NET- example using purchase of $800 of inventory, terms 2/10, n30 -…

A: The periodic inventory system and the perpetual inventory system are two different methods used by…

Q: Beginning inventory, purchases, and sales for Item CSW15 are as follows: August 1 Inventory 104 15…

A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…

Q: QUESTION 1 Merchandise inventory is classified on the balanc a. long-term asset b. current liability…

A: In business there is need of inventory without maintaining sufficient inventory business can not be…

Q: In the Perpetual/Periodic Inventory System what are the merchandise inventory and Income summary?…

A: Perpetual inventory: Under perpetual inventory system each transaction for purchase of inventory,…

Q: Determine the missing amount for each separate situation involving inventory cost flows. Cost of…

A: Cost of goods sold means actual cost of goods being sold to customers. It is calculated by adding…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: The objective of the question is to identify the correct journal entry to record the return of…

Q: » Q-8-3b. Adjust Perpetual Inventory Records Craig's Design and Landscaping Services accountant…

A: Inventory quantity adjustment is a process of reconciling the quantity of inventory on hand with the…

Q: The amount shown in the balance sheet debit column of worksheet for Merchandise Inventory​ is:   A.…

A: Merchandise inventory: It can be defined as any type of manufactured goods that are acquired by the…

Q: Need answer

A: The question is asking for the amount to be included in inventory according to the "lower of cost or…

Q: Which of the following journal entries is appropiate when a credit sales is made under a perpetual…

A: Under the perpetual inventory method, we need to record sales and also the cost of goods sold.

Q: How to adjust net income to cashflow.

A: In cashflow there are 2 methods for calculating operating cash flow, they are: a. Direct Method b.…

Q: COGS

A: COGS = Beginning inventory + COGM - Ending inventory (Note: COGM stands for Cost of Goods…

Q: termining the Beginning and Ending Inventory from a Partial Spreadsheet: Periodic Inventory System…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: Question Content Area Beginning inventory, purchases, and sales for an inventory item are as…

A: The objective of the question is to calculate the cost of goods sold (COGS) and the ending inventory…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: In this scenario, a company has purchased inventory on account, meaning they have not yet paid for…

Q: Compute the inventory by the conventional retail inventory method. Ending inventory using…

A: The retail inventory method is a method that is used for the estimation of the merchandise value.…

Q: The perpetual and periodic inventory systems are designed to ensure that inventory accounts are…

A: Perpetual Goods System: Under a perpetual inventory system, inventory records are always up to date…

Q: DATA Quantity Price Beginning inventory 8,100 $160 Sale 5,000 $300 First purchase 15,400 $167 Sale…

A: FIFO and LIFO accounting methods are used for determining the value of unsold inventory, the cost of…

Q: Cash Accounts Receivable Merchandise Inventory Unearned Revenue Revenue Purchases Purchases…

A: Accounting uses journal entries called adjusting entries to allocate income and costs to the proper…

Q: Which of the following entries would be made to record the purchase of inventory on account for…

A: In a perpetual inventory system, the inventory account is continuously updated to reflect the…

Q: Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as…

A: FIFO : It stands for First -In-First -Out. It is a method of inventory valuation where materials…

Q: coupons were presented for redemption in 2020. It is estimated that 60% ption.

A: Answer : Journal entries : Date Account title Dr. Cr. 2020 Inventory of premiums $7,050…

Q: What is the correct entry to write off the inventory under perpetual method? Dr. Cost of Goods sold…

A: The Perpetual Inventory System is a highly preferred system as it can produce accurate results…

Q: What is the correct ending balance of Inventory under the LIFO method given the following…

A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…

Q: 31. Under a perpetual inventory system, a.a physical count is required to determine cost of…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Compute cost of goods sold using the following information. $12,200 Merchandise inventory, beginning…

A: Cost of goods sold: It is the cost of acquiring the goods or manufacturing the goods which are sold…

Q: Beginning inventory, purchases, and sales for Item XJ-56 are as follows: May 1      Beginning…

A: Introduction: Ending inventory is the worth of products still available for purchase and held by a…

Q: Assume the perpetual inventory system is used. Sales $642,363 Merchandise Inventory 582,620 Sales…

A: Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts. Net…

Q: The following data represent the beginning inventory and, in order of occurrence, the purchases and…

A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.