The following information is available for a company: Beginning inventory $ 33,000 Inventory purchases (on account) 163,000 Freight charges on purchases (paid in cash) 18,000 Inventory returned to suppliers (for credit) 20,000 Ending inventory 38,000 Sales (on account) 258,000 Cost of inventory sold 156,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
The following information is available for a company: Beginning inventory $ 33,000 Inventory purchases (on account) 163,000 Freight charges on purchases (paid in cash) 18,000 Inventory returned to suppliers (for credit) 20,000 Ending inventory 38,000 Sales (on account) 258,000 Cost of inventory sold 156,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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The following information is available for a company:
| Beginning inventory | $ 33,000 |
|---|---|
| Inventory purchases (on account) | 163,000 |
| Freight charges on purchases (paid in cash) | 18,000 |
| Inventory returned to suppliers (for credit) | 20,000 |
| Ending inventory | 38,000 |
| Sales (on account) | 258,000 |
| Cost of inventory sold | 156,000 |
Required:
Applying both a perpetual and a periodic inventory system, prepare the
Record merchandise purchased on account for $163,000.
Record the payment of $18,000 in cash for freight charges.
Record merchandise returned to supplier for credit of $20,000.
Record sales on account of $258,000.
Record cost of merchandise sold of $156,000.
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