Chapter 6, Problem 6.19BE

Record purchase returns of inventory using a perpetual system (LO6–5)

Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on account on February 2 for $60,000 ($40 per unit) but then returns 100 defective units on February 5. Record the inventory purchase on February 2 and the inventory return on February 5.

Record purchase returns of inventory using a periodic system (LO6–8)

BE6–19 Refer to the information in BE6–12, but now assume that Shankar uses a periodic system to record inventory transactions. Record the inventory purchase on February 2 and the inventory return on February 5.