year, the following events occurred: Summer Company is a wholesaler of car seatcovers. At the heginning of the current year, the entity's inventory consisted of 90 car seatcovers priced at P1,000 each. During the current year, the following events occurred: 1. Purchased 800 car seatcovers on account at P1,000 each. 2. Returned 50 defective car seatcovers to supplier and received credit. 3. Paid 600 of the car seatcovers purchased. 4. Sold 790 car seatcovers at P2,000 each. 5. Received 20 car seatcovers returned by a customer and credit. The goods were in excellent condition. 6. Received cash for 680 of the car seatcovers sold. 7. Physical count at year-end revealed 60 units on hand. gave Required: a. Prepare journal entries, including adjustments to record the above transactions assuming the company uses periodic system and perpetual systen. b. Determine the cost of sales under each inventory system.

year, the following events occurred: Summer Company is a wholesaler of car seatcovers. At the heginning of the current year, the entity's inventory consisted of 90 car seatcovers priced at P1,000 each. During the current year, the following events occurred: 1. Purchased 800 car seatcovers on account at P1,000 each. 2. Returned 50 defective car seatcovers to supplier and received credit. 3. Paid 600 of the car seatcovers purchased. 4. Sold 790 car seatcovers at P2,000 each. 5. Received 20 car seatcovers returned by a customer and credit. The goods were in excellent condition. 6. Received cash for 680 of the car seatcovers sold. 7. Physical count at year-end revealed 60 units on hand. gave Required: a. Prepare journal entries, including adjustments to record the above transactions assuming the company uses periodic system and perpetual systen. b. Determine the cost of sales under each inventory system.

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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