Under the periodic inventory system, which of the following is a correct closing entry? A) Income summary, debit; Sales, credit B) Income summary,  credit; Sales Returns and Allowances, debit C) Income Summary, debit; Merchandise Inventory (beginning), credit D) Purchases, debit, Income Summary,  credit

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: List the steps to record sales under a perpetual inventory system as a buyer and a seller.

A: The accounting practice of perpetual inventory allows a company to keep continuous, real-time track…

Q: The journal entry to record the payment of merchandise on account with a discount under the Periodic…

A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…

Q: True or False Merchandise inventory is reported in the long-term assets section of the statement of…

A: Long-term assets:                            Long-term assets are those assets called noncurrent…

Q: Under a perpetual inventory system, acquisition of merchandise for resale is debited to the…

A: Inventory accountExplanation:Under a perpetual inventory system, acquisition of merchandise for…

Q: [The following information applies to the questions displayed below.] Home Hardware reported…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: An account used in the perpetual inventory system that is not used in the periodi inventory system…

A: The main distinction between inventory systems is the goods inventory account.Periodic inventory…

Q: Under the perpetual inventory system, in addition to making the entry to record a sale, a company…

A: Under perpetual inventory system, the decrease in inventory is also recorded every time of sale.

Q: When recording a purchase of inventory on credit, which accounts are typically affected? A) Debit…

A: When assets or expenses increases it should be debited and when decreases it should be…

Q: The inventory is added to the inventory records after three documents are reconciled. One of those…

A: To add the inventory to the inventory records, the documents are reconciled which records the…

Q: 126) Using a perpetual inventory system, the sale of inventory on account is recorded with a: B)…

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

Q: Which of the following is a true statement about inventory systems? A perpetual system determines…

A: The correct statement about inventory systems is:Perpetual inventory systems require more detailed…

Q: Describe in words the journal entries that are made ina perpetual inventory system when inventory is…

A: Perpetual inventory system provides a running balance of cost of goods available for sale and cost…

Q: ic inventory system wants to remove beginning estimated returns inventory, which of the following…

A: The right answer is option a.Estimated Returns Inventory

Q: Required Informatlon [The following information applies to the questions displayed below.] Now that…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

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: A periodic inventory system does not continually modify inventory amounts, but instead adjusts for…

A: The inventory under the periodic inventory system does not modify continuously but at the end. The…

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: Describe the journal entry(ies) when recording a sale of inventory using the periodic inventory…

A: In a periodic Inventory system, the entries are made in the system at the end of the accounting…

Q: Which inventory system records both sales and cost of goods sold at the point of sale? Group of…

A: There are different types of inventory system being used depending the record of pricing and record…

Q: What is the correct entry to write off the inventory under perpetual method? Dr. Cost of Goods sold…

A: The Perpetual Inventory System is a highly preferred system as it can produce accurate results…

Q: 31. Under a perpetual inventory system, a.a physical count is required to determine cost of…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Listed below are selected examples of transactions related to the purchase and sale of inventory…

A: An accounting transaction may be classified in accounting head as asset, liability, expense or…

Q: Describe the journal entries when recording a sale of inventory using the periodic inventory system.

A: Definition:

Q: The Inventory account is used in each of the following except the entry to record payment of freight…

A: Inventory valuation is the cost related with an entity's inventory at the end of a reporting period.…

Q: Under the perpetual inventory method, what account is credited when adjusting for the estimated cost…

A: Perpetual inventory system is the system of maintaining the inventory records perpetually throughout…

Q: why both the "beginning inventory" and "ending inventory" figures both appear on the Income…

A: Periodic inventory system is a inventory system in which all purchase and sale transactions related…

Q: If each purchase and sale of merchandise is recorded in the inventory and the cost of merchandise…

A: Under periodic inventory, no cost of goods sold is entry is recorded for every sale transaction. At…

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.