Chapter 6, Problem 6.19E

Record inventory purchases and sales using a periodic system (LO6–8)

Refer to the transactions in E6–11.

Required:

  1.    Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system.

  2.    Record the period-end adjustment to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,859.50.

Record transactions using a perpetual system (LO6–5)

Flip Side of E6–12

E6–11 DS Unlimited has the following transactions during August.

    August 6    Purchases 70 handheld game devices on account from GameGirl, Inc., for $200 each, terms 1/10, n/60.

    August 7    Pays $400 to Sure Shipping for freight charges associated with the August 6 purchase.

    August 10    Returns to GameGirl six game devices that were defective.

    August 14    Pays the full amount due to GameGirl.

    August 23    Sells 50 game devices purchased on August 6 for $220 each to customers on account. The total cost of the 50 game devices sold is $10,212.50.

Required:

Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system.