(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of $560. During the year, Wexton purchased inventory costing $1,160 and sold goods for $2,600, with all transactions on account Wexton ended the year with inventory of $640. Journalize all the necessary transactions under the periodic inventory system.

Question

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Answer 1

Textbook Question

Chapter 6A, Problem 1S

(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of $560. During the year, Wexton purchased inventory costing $1,160 and sold goods for $2,600, with all transactions on account Wexton ended the year with inventory of $640. Journalize all the necessary transactions under the periodic inventory system.

Expert Solution & Answer

To determine

To journalize: All the transactions under the periodic inventory system.

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.

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02:38

Students have asked these similar questions

Please need answer this general accounting question

Gross profit?? General Account

Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.

Answer 2

Textbook Question

Chapter 6A, Problem 1S

(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of $560. During the year, Wexton purchased inventory costing $1,160 and sold goods for $2,600, with all transactions on account Wexton ended the year with inventory of $640. Journalize all the necessary transactions under the periodic inventory system.

Expert Solution & Answer

To determine

To journalize: All the transactions under the periodic inventory system.

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.

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02:38

Answer 3

Textbook Question

Chapter 6A, Problem 1S

(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of $560. During the year, Wexton purchased inventory costing $1,160 and sold goods for $2,600, with all transactions on account Wexton ended the year with inventory of $640. Journalize all the necessary transactions under the periodic inventory system.

Expert Solution & Answer

To determine

To journalize: All the transactions under the periodic inventory system.

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.

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02:38

Answer 4

Textbook Question

Chapter 6A, Problem 1S

(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of $560. During the year, Wexton purchased inventory costing $1,160 and sold goods for $2,600, with all transactions on account Wexton ended the year with inventory of $640. Journalize all the necessary transactions under the periodic inventory system.

Expert Solution & Answer

To determine

To journalize: All the transactions under the periodic inventory system.

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.

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02:38

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To journalize: All the transactions under the periodic inventory system.

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.

Answer 8

Expert Solution & Answer

To determine

To journalize: All the transactions under the periodic inventory system.

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To journalize: All the transactions under the periodic inventory system.

Answer 12

Answer to Problem 1S

Journalize the all necessary journal entries under the periodic inventory system.

Date	Account title and Explanation	Post Ref.	Debit ($)	Credit ($)
1	Purchases		1,160
	Accounts Payable			1,160
	(To record the purchase of inventory)

2	Accounts Receivable		2,600
	Sales revenue			2,600
	(To record the Sales revenue)

Year-end entries to record the Cost of goods sold and update the inventory.
3	Cost of Goods Sold		560
	Inventory (beginning balance)			560
	(To transfer the beginning inventory to Cost of goods sold)

4	Cost of Goods Sold		1,160
	Purchases			1,160
	(To transfer the purchases to Cost of goods sold)

5	Inventory (ending balance)		640
	Cost of Goods Sold			640
	(To update the ending inventory based on physical count)

Table (1)

Answer 13

Explanation of Solution

Purchase of inventory:

Purchases (stockholders equity) are increased. Thus, purchases are debited with $1,160.
Accounts Payable (liabilities account) is increased. Thus, it is credited with $1,160.

Sale of inventory:

Accounts receivable (Asset Account) is increased. Thus, it is debited with $2,600.
Sales revenue (Stockholders Equity account) is increased. Thus, it is credited with $2,600.

Transferring the beginning inventory to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $560.
Inventory (Asset account) is decreased. Thus, it is credited with $560.

Transferring the purchases to Cost of Goods Sold:

Cost of goods sold (Stockholders Equity account) is increased. Thus, it is debited with $1,160.
Purchases (stockholders equity) are decreased. Thus, purchases are credited with $1,160.

Update the ending inventory based on physical count:

Inventory (asset account) is increased. Thus, it is debited with $640.
Cost of Goods Sold (Stockholders Equity) is decreased. Thus, it is credited with $640.