The closing entries for a merchandising entity using the perpetual inventory system are fewer in number than if the periodic system were used are the same regardless of inventory system used calculate the gross profit in the Income Summary acc

Q: Under a perpetual inventory system a. accounting records continuously disclose the amount of…

A: Under the perpetual inventory system, purchases and sales are continuously updated to the inventory.

Q: Which of the following accounts does not appear in the general ledger of a company using the…

A: Under periodic inventory system , day to day in and out of inventory is not recorded . Closing…

Q: hich of the following statements relative to book (perpetual) inventory systems Is false? a. Use of…

A: Answer: Book inventory systems is defined as the inventory system which records inventory based on…

Q: Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV using…

A: Periodic system of inventory is the one which states the inventory under that the updates are made…

Q: No entry is made at the time of a sale to the Cost of Goods Sold Account or the Inventory Account…

A: There are two type of inventory system follows by the organizations i.e. Periodic inventory system…

Q: The elimination entry under the perpetual inventory system for intercompany sales  is a debit to…

A: SOLUTION- THE ELIMINATION ENTRY REMOVES IC SALES FROM THE CONS. UNIT (VENDOR) AND IC PURCHASE FROM…

Q: Cost of goods sold is determined only at the end of the accounting period in a perpetual inventory…

A: Periodic inventory system :The periodic inventory system is a method of ascertaining inventory by…

Q: Summarize a periodic inventory system by selecting all of the correct statements below. (Check all…

A: Periodic Inventory:The periodic inventory system is based on periodic reviews and physical counts of…

Q: wing accounts would appear on a worksheet for a mechandising e periodic inventory system? sold ary…

A: All of the accounts will be presented and considered on a worksheet for a merchandising entity Cost…

Q: 31) What is the Adjusting journal entry to record when merchandise inventory is overstated in the…

A: Merchandise inventory is a form of asset for the company. It should be debited in case of increase…

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: The Rider Company uses the gross profit method to estimate ending inventory and cost of goods sold.…

A: In order to accurately estimate the ending inventory under the gross profit method, the cost…

Q: Walmart uses a perpetual inventory system. Which of the following is a reason why Walmart needs to…

A: Periodic inventory system is that inventory system under which all transactions related to inventory…

Q: Which of the ff needs an adjustment to the A/R account of ABS company? a. goods in transit of the…

A: Under the FOB destination point sale, the seller can record its sales only after the buyer takes the…

Q: Which of the following needs an adjustment to the accounts receivable account of ABC Company? a.…

A: Accounts receivable are created by an organisation when it records sales on credit. The accounts…

Q: True or False

A: Given statement is: Under the periodic inventory system, the merchandise inventory account is not…

Q: The Cloud Company employs a perpetual inventory system and the McKenzie Corporation uses a…

A: Definition:   Perpetual and periodic inventory system: In merchandise business, there are two types…

Q: The Habib Company did not include in their inventory count inventory that was sold to a customer…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Which of the following statements is correct? O Cost of goods sold computed under a periodic system…

A: Lets understand the basics.There are two inventory methods are followed which calculating inventory…

Q: Under periodic accounting system, when merchandize is sold, entry is posted in which account? *…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Under the periodic inventory system, which of the following is a correct closing entry? A) Income…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: • Explain why there isn't there a "Cost of merchandise sold" expense for a service business.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Physical counts of inventory: O a. Must be taken at least once a month. O b. Are not necessary under…

A: A physical count of inventory means having an actual count of inventory despite maintaining…

Q: e. Inventory The company has the policy of stating all inventory on hand at the lower of cost and…

A: Lower of Cost and Net Realizable Value (Market) - It is method of inventory costing that values…

Q: Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops…

A: Sometimes, customers are provided with offer of sending empty boxes to the company and in return…

Q: Which of the following statements is correct concerning the operati merchandiser who chooses to use…

A: A periodic inventory system is that system in which inventory is counted on a physical basis at the…

Q: In a periodic inventory system, cost of goods sold is not recorded as each sale occurs. Group…

A: The income statement is prepared to estimate the profitability of the business for the current…

Q: Under periodic inventory system, at the time of sale of inventory the journal entry for cost of…

A: Periodic Inventory System Basically there are two types of inventory system are there.  One is…

Q: The amount shown in the adjustments credit column for Merchandise Inventory on the worksheet​ is:…

A: COGS is an expense item computed by subtracting the closing stock from the sum of the opening stock…

Q: Under a perpetual inventory system:   Multiple Choice   Cost of good sold is recorded with a…

A: Inventory management is a method of acquiring, keeping, and selling inventory, which includes both…

Q: An auditor is likely to perform each of the below procedures to obtain evidence regarding the…

A: Audit  Contrary to unfavorable opinions, scope restrictions or the presence of significant…

Q: Under the perpetual inventory system, which of the following accounts is credited in the adjusting…

A: The objective of the question is to identify the correct account that is credited in the adjusting…

Q: In recording the cost of goods sold based on data available from perpetual inventory records, the…

A: The inventory method is allocated into two categories i.e. perpetual inventory system and periodic…

Q: Both the gross profit method and the retail inventory method provide a way to estimate ending…

A: Gross Profit Method: Under this method, the beginning inventory is added to the net purchases during…

Q: If a company uses a periodic inventory system, which of the following entry or entries are required…

A: When a physical inventory count is done, a periodic inventory system simply updates the general…

Q: The Faber Company

A: 1]  Deductions are the amount of money that is part of the CTC package offered to an employee but is…

Q: b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a…

A: Inventory is the stock that an entity owns for selling in the market. It represents the goods that…

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.