Explanation Perpetual Inventory System refers to the inventory system that maintains the detailed records of every inventory transactions related to purchases and sales on a continuous basis. It shows the exact on-hand-inventory at any point of time. Record the journal entry for merchandise sold: Date Account Title and Explanation Debit ($) Credit ($) April 1 Accounts Receivable 3,000 Sales Revenue 3,000 (To record merchandise sales on account) Cost of goods sold 1,800 Merchandise Inventory 1,800 (To record cost of goods sold) Table (1) Description: Accounts Receivable is an asset and it is increased by $3,000. Therefore, debit account receivable with $3,000. Sales revenue is revenue and it increases the value of equity by $3,000. Therefore, credit sales revenue with $3,000. Cost of goods sold is an expense account and it decreases the value of equity by $1,800. Therefore, debit cost of goods sold account with $1,800. Merchandise inventory is an asset and it is decreased by $1,800. Therefore, credit inventory account with $1,800. Record the journal entry for sales return: Date Account Title and Explanation Debit ($) Credit ($) April 4 Sales Returns and Allowance 300 Accounts Receivable 300 (To record the sales return) Merchandise Inventory 180 Cost of goods sold 180 (To record the reversal of cost of goods sold on sales return) Table (2) Description: Sales return and allowance is an expense account and it decreases the value of equity by $300. Therefore, debit sales returns and allowances account with $300. Accounts Receivable is an asset and it is decreased by $300. Therefore, credit account receivable with $300. Inventory is an asset and it is increased by $180. Therefore, debit inventory account with $180. Cost of goods sold is an expense account and it increases the value of equity by $180. Therefore, credit cost of goods sold account with $180...

Connect Access Card For Financial Accounting Fundamentals

7th Edition

ISBN: 9781260482829

Author: John J Wild

Publisher: McGraw-Hill Education

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Chapter 4, Problem 8QS

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Prepare journal entries to record the transactions of the company during the month of April using perpetual inventory system.

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Chapter 4, Problem 7QS

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Connect Access Card For Financial Accounting Fundamentals

Ch. 4 - Prob. 1MCQ Ch. 4 - Prob. 2MCQ Ch. 4 - Prob. 3MCQ Ch. 4 - Prob. 4MCQ Ch. 4 - Prob. 5MCQ Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - Prob. 3DQ Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 5DQ

Ch. 4 - Prob. 6DQ Ch. 4 - Prob. 7DQ Ch. 4 - Prob. 8DQ Ch. 4 - Prob. 9DQ Ch. 4 - Prob. 10DQ Ch. 4 - Prob. 11DQ Ch. 4 - Prob. 12DQ Ch. 4 - Prob. 13DQ Ch. 4 - Prob. 14DQ Ch. 4 - Prob. 15DQ Ch. 4 - Prob. 1QS Ch. 4 - Prob. 2QS Ch. 4 - Prob. 3QS Ch. 4 - Prob. 4QS Ch. 4 - Prob. 5QS Ch. 4 - Prob. 6QS Ch. 4 - Prob. 7QS Ch. 4 - Prob. 8QS Ch. 4 - Prob. 9QS Ch. 4 - Prob. 10QS Ch. 4 - Prob. 11QS Ch. 4 - Prob. 12QS Ch. 4 - Prob. 13QS Ch. 4 - Prob. 14QS Ch. 4 - Prob. 15QS Ch. 4 - Prob. 16QS Ch. 4 - Prob. 17QS Ch. 4 - Prob. 18QS Ch. 4 - Prob. 19QS Ch. 4 - Prob. 20QS Ch. 4 - Prob. 21QS Ch. 4 - Prob. 22QS Ch. 4 - Prob. 23QS Ch. 4 - Prob. 1E Ch. 4 - Prob. 2E Ch. 4 - Prob. 3E Ch. 4 - Prob. 4E Ch. 4 - Prob. 5E Ch. 4 - Prob. 6E Ch. 4 - Prob. 7E Ch. 4 - Prob. 8E Ch. 4 - Prob. 9E Ch. 4 - Prob. 10E Ch. 4 - Prob. 11E Ch. 4 - Prob. 12E Ch. 4 - Exercise 4-13 Physical count error and...Ch. 4 - Prob. 14E Ch. 4 - Prob. 15E Ch. 4 - Prob. 16E Ch. 4 - Prob. 17E Ch. 4 - Prob. 18E Ch. 4 - Prob. 19E Ch. 4 - Prob. 20E Ch. 4 - Prob. 21E Ch. 4 - Prob. 22E Ch. 4 - Prob. 23E Ch. 4 - Prob. 1AP Ch. 4 - Prob. 2AP Ch. 4 - Prob. 3AP Ch. 4 - Prob. 4AP Ch. 4 - Prob. 5AP Ch. 4 - Prob. 6AP Ch. 4 - Prob. 1BP Ch. 4 - Prob. 2BP Ch. 4 - Prob. 3BP Ch. 4 - Prob. 4BP Ch. 4 - Prob. 5BP Ch. 4 - Prob. 6BP Ch. 4 - Prob. 4SP Ch. 4 - Prob. 1BTN Ch. 4 - Prob. 2BTN Ch. 4 - Prob. 3BTN Ch. 4 - Prob. 4BTN Ch. 4 - Prob. 5BTN Ch. 4 - Prob. 7BTN Ch. 4 - Prob. 9BTN

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