Question 4 You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct:Inventory of $246,720 was on hand at the start of the year.Purchases for the year totalled $1,690,000. Of this, $1,412,000 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase.A year-end inventory count revealed inventory of $324,800Q:Assume that during the year, total inventory was sold for $2,800,000 on credit. What would be the entries to record the sales transaction under periodic inventory control system? What would be the entries to record the sales transaction under perpetual inventory control system?

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Description: Question 4 You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determi

Periodic Inventory System - It updates ending inventory balance in the ledger when a physical…

Answered: You are the senior accountant for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question 4

You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your company’s records, which you assume is correct:

Inventory of $246,720 was on hand at the start of the year.
Purchases for the year totalled $1,690,000. Of this, $1,412,000 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase.
A year-end inventory count revealed inventory of $324,800

Q:Assume that during the year, total inventory was sold for $2,800,000 on credit. What would be the entries to record the sales transaction under periodic inventory control system? What would be the entries to record the sales transaction under perpetual inventory control system?

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