Sanchez Company is a wholesaler of bakery equipments. Beginning of the current year, the entity's inventory consisted of 90 bakery equipments priced at P1,000 each, and during the current year with the following transactions; 1. purchased 700 bakery equipments on account at P1,000 each 2. returned 60 defective bakery equipments to supplier and received credit. 3. paid 630 of the bakery equipments purchased. 4. sold 600 bakery equipments at P2,000 each 5. received 30 bakery equipments returned by a customer and gave credit. 6. received cash for 520 of the bakery equipments sold. 7. Physical count at year-end revealed 70 units on hand Required; a. prepare journal entries, including adjustments to record the above transactions assuming the company uses the periodic system and perpetual system b. determine the cost of sales under each inventory system.
Sanchez Company is a wholesaler of bakery equipments. Beginning of the current year, the entity's inventory consisted of 90 bakery equipments priced at P1,000 each, and during the current year with the following transactions;
1. purchased 700 bakery equipments on account at P1,000 each
2. returned 60 defective bakery equipments to supplier and received credit.
3. paid 630 of the bakery equipments purchased.
4. sold 600 bakery equipments at P2,000 each
5. received 30 bakery equipments returned by a customer and gave credit.
6. received cash for 520 of the bakery equipments sold.
7. Physical count at year-end revealed 70 units on hand
Required;
a. prepare
b. determine the cost of sales under each inventory system.
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