Perpetual Inventory Journal EntriesKJ Company engaged in the following transactions in September 2020.Sept 1 Sold merchandise to ABC company on credit, terms 2/10, n/30, $3,000, (cost $1,800).3 Received a return of goods sold to ABC of $300 (cost $180).4 Purchased merchandise on credit from Newark Company, terms 3/15, n/60, FOB shipping point, for $6,000.5 Paid freight charges to Delivery Company of $100 to get freight in.8 Returned merchandise to Newark Company costing $500.9 Received check from ABC Company for their purchase on Sept 1.17 Paid Newark Company for the balance due for inventory.Prepare appropriate journal entries assuming KJ Company uses a perpetual inventory system.

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Description: Perpetual Inventory Journal EntriesKJ Company engaged in the following transactions in September 2020.Sept 1 Sold merchandise to ABC company on credit, terms 2/10, n/30, $3,000, (cost $1,800).3 Received a return of goods sold to ABC of $300 (cost $1

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Prepare appropriate journal entries assuming KJ Company uses a perpetual inventory system.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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.

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Perpetual Inventory Journal Entries
KJ Company engaged in the following transactions in September 2020.
Sept 1 Sold merchandise to ABC company on credit, terms 2/10, n/30, $3,000, (cost $1,800).
3 Received a return of goods sold to ABC of $300 (cost $180).
4 Purchased merchandise on credit from Newark Company, terms 3/15, n/60, FOB shipping point, for $6,000.
5 Paid freight charges to Delivery Company of $100 to get freight in.
8 Returned merchandise to Newark Company costing $500.
9 Received check from ABC Company for their purchase on Sept 1.
17 Paid Newark Company for the balance due for inventory.
Prepare appropriate journal entries assuming KJ Company uses a perpetual inventory system.

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