Which one of the following transactions isrecorded with the same entry in a perpetualand a periodic inventory system? *O Cash received on account with a discountPayment of freight costs on a purchaseReturn of merchandise soldSale of merchandise on credit

With the perpetual system all the sales are directly credited to inventory and all the purchases are…

Answered: Which one of the following transactions…

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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What is the correct entry to write off the inventory under perpetual method? Dr. Cost of Goods sold Cr. Inventory Account B Dr. Sales Cr. Cost of Goods sold © Dr. Sales Cr. Inventory Account Dr. Inventory Account Cr. Cost of Goods sold
How do you determine the invoice of merchandise returned?
What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts receivable, merchandise inventoryB. accounts payable, merchandise inventoryC. accounts payable, cashD. sales, accounts receivable
Listed below are selected examples of transactions related to the purchase and sale of inventory from the perspective of the seller or the buyer as indicated. Assume a perpetual inventory system is in use. 1. N 2. 3. 4. 5. 6. 7. 8. 9. 10. 3. For each of the above transactions, indicate (a) the basic type (asset, liability, revenue, or expense) of each account to be debited and credited; (b) the specific name(s) of the account(s) to debit and credit (for example, Inventory); and (c) whether each account is increased (+) or decreased (-) and by what amount. The first one has been done for you as an example. (Enter specific debited account items in alphabetical order. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 4. (a) Item Basic Type of Account 1. Asset 2. 5. 6. 7. 8. Buyer: Purchase of $2,940 of inventory for cash. Buyer: Return of $630 of inventory to seller for credit on account. Buyer: Purchase of $3,360 of inventory on…
The trade discount on purchases is recorded A. O When it is received B.When the inventory is purchased C.When the inventory is sold D. O Not at all recorded in the books
If the balance in the inventory account is greater than the physical count, which of the following journal entries is recorded? a.Debit Merchandise Inventory and credit Inventory Short and Over b.Debit Merchandise Inventory and credit Cost of Goods Sold c.Debit Cost of Goods Sold and credit Merchandise Inventory d.Debit Inventory Short and Over and credit Merchandise Inventory
If each purchase and sale of merchandise is recorded in the inventory and the cost of merchandise sold accounts, the method of accounting for merchandise inventory is the: A perpetual method. B) periodic method. C) gross profit method. D) administrative method.
Using a perpetual inventory system, the return to their supplier of merchandise purchased on account includes a(n) _____. a.increase in Merchandise Inventory b.decrease in Merchandise Inventory c.increase in Sales d.decrease in Sales
The account used to adjust the perpetual inventory records when a difference exists between the physical count and the amount in the perpetual inventory records is called a. Inventory Short and Over. b. Estimated Returns Inventory. c. Inventory Shrinkage. d. Merchandise Inventory
The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase discounts. Freight costs paid by the seller. Returns and allowances. Freight costs paid by the buyer.
In a perpetual inventory system, purchases of merchandise on account are recorded by debiting: a Cost of Goods Sold. b Accounts Payable. c Purchases. d Inventory.
Why is the purchase journal used for journalizing the purchase of merchandise for resale on account only?

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Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system? * Cash received on account with a discount Payment of freight costs on a purchase Return of merchandise sold O Sale of merchandise on credit