16. Joseph Howard owns a bicycle parts business called Quality Bike Products. Thefollowing transactions took place during July the current year.July 5 Purchased merchandise on account from Wheeler Warehouse, $3,300.8 Paid freight charge on merchandise purchased, $330.12 Sold merchandise on account to Big Time Spoiler, $4,500. The merchandise cost $2,500.15 Received a credit memo from Wheeler Warehouse for merchandise, $470.Required:1. Journalize the above transactions in a general journal using the periodic inventory method.2. Journalize the above transactions in a general journal using the perpetual inventory method.GENERAL JOURNAL (Periodic Inventory Method)Page 1PostDateDescriptionRef.DebitCredit

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Description: 16. Joseph Howard owns a bicycle parts business called Quality Bike Products. Thefollowing transactions took place during July the current year.July 5 Purchased merchandise on account from Wheeler Warehouse, $3,300.8 Paid freight charge on merchandi

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Required: 1. Journalize the above transactions in a general journal using the periodic inventory method. 2. Journalize the above transactions in a general journal using the perpetual inventory method.

Required: 1. Journalize the above transactions in a general journal using the periodic inventory method. 2. Journalize the above transactions in a general journal using the perpetual inventory method.

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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Concept explainers

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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Question

16. Joseph Howard owns a bicycle parts business called Quality Bike Products. The
following transactions took place during July the current year.
July 5 Purchased merchandise on account from Wheeler Warehouse, $3,300.
8 Paid freight charge on merchandise purchased, $330.
12 Sold merchandise on account to Big Time Spoiler, $4,500. The merchandise cost $2,500.
15 Received a credit memo from Wheeler Warehouse for merchandise, $470.
Required:
1. Journalize the above transactions in a general journal using the periodic inventory method.
2. Journalize the above transactions in a general journal using the perpetual inventory method.
GENERAL JOURNAL (Periodic Inventory Method)
Page 1
Post
Date
Description
Ref.
Debit
Credit

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