Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period. Sales is an activity of selling the merchandise inventory of a business. To Record: The sales transactions for SC Store using periodic inventory system.

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[The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022. Available information follows: The inventory at January 1, 2022, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method. Transactions during 2022 were as follows: CostRetailGross purchases$ 282,000S 490,000 Purchase returns 6,50010,000 Purchase discounts 5,000 Sales 492,000Sales returns 5,000 Employee discounts 3,000 Freight - in26, 500 Net markups 25,000Net markdowns 10,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2023, inventory was $56, 100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62 %, and the appropriate price index was 102% of the January 1, 2023, price level. The retail value of the December 31, 2024, inventory was $48, 300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61…

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Chapter 5, Problem 5.12SE

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period.

Sales is an activity of selling the merchandise inventory of a business.

To Record: The sales transactions for SC Store using periodic inventory system.

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[The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022. Available information follows: The inventory at January 1, 2022, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method. Transactions during 2022 were as follows: CostRetailGross purchases$ 282,000S 490,000 Purchase returns 6,50010,000 Purchase discounts 5,000 Sales 492,000Sales returns 5,000 Employee discounts 3,000 Freight - in26, 500 Net markups 25,000Net markdowns 10,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2023, inventory was $56, 100, the cost-to-retail percentage for 2023 under the LIFO retail method was 62 %, and the appropriate price index was 102% of the January 1, 2023, price level. The retail value of the December 31, 2024, inventory was $48, 300, the cost-to-retail percentage for 2024 under the LIFO retail method was 61…

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