People’s Discount sells medical supplies and purchases their merchandise from a manufacturer. Review the following transactions and prepare the entries if People’s Discount uses:the perpetual inventory systemthe periodic inventory system Apr. 7People’s Discount purchases 50 medical stands on credit at a purchase price of $15 per stand. The terms of the purchase are 5/10, n/45, with an invoice date of April 7.Apr. 11People’s Discount returns 18 stands to the manufacturer for a full refund.Apr. 17People’s Discount pays in full for the remaining stands, less the return.

Perpetual inventory system is a system in which all purchase and sale transactions of inventory are…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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People’s Discount sells medical supplies and purchases their merchandise from a manufacturer. Review the following transactions and prepare the entries if People’s Discount uses:

the perpetual inventory system
the periodic inventory system

Apr. 7	People’s Discount purchases 50 medical stands on credit at a purchase price of $15 per stand. The terms of the purchase are 5/10, n/45, with an invoice date of April 7.
Apr. 11	People’s Discount returns 18 stands to the manufacturer for a full refund.
Apr. 17	People’s Discount pays in full for the remaining stands, less the return.

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