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. To Record: The journal entry for purchase and payment.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

2.

To determine

To Record: The payment of accounts payable after the discount period.

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

MF2 9 Purchased merchandise from Keene Co. for $9,100 under credit terms of 2/15, n/60, FOB destination. Analysis Component: As the senior purchaser for Belton Company, you are concerned that the purchase discounts you have negotiated are not being taken advantage of by the accounts payable department. Calculate the cost of the lost discount regarding the July 9 purchase. Assume a 6% interest rate. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume 365 days a year.)

PARRISH Pg. 173 PURCHASE DISCOUNTS GROSS METHOD Would you please explain the following transactions that are listed in both Periodic and Perpetual Format. Explain why each account is used and why it is DR or CR...etc. Receipt of Invoice Periodic Dr. Purchases 1,000Cr. Accounts Payable 1,000PerpetualDr Inventory 1,000Cr Accounts Payable 1,000 Payment within the 10-day discount period PeriodicDr. Accounts Payable 1,000Cr. Cash 980Cr. Purchase Discounts 20PerpetualDr. Accounts Payable 1,000Cr. Cash 980Cr. Inventory 20 Payment after discount period Periodic Dr Acounts Payable 1,000 Cr. Cash 1,000 Perpetual Dr. Accounts Payable 1,000 Cr. Cash 1,000

20/Renolta traders purchased goods on 7th April, 2018 for RO 78,000 on credit under the payment terms 3/10, n/30 and paid cash on 15th April, 2018. How would you record this in the books of buyer under perpetual inventory system? a. Account payable RO 78,000 Dr / Merchandise inventory RO 2,340 Cr / Cash RO 75,660 Cr b. Account payable RO 78,000 Dr / Cash RO 78,000 Cr c. Cash RO 75,660 Dr / Merchandise inventory RO 2,340 Dr /Account payable RO 78,000 Cr d. Cash RO 78,000 Dr / Account payable RO 78,000 Cr

Answer 2

Question

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

2.

To determine

To Record: The payment of accounts payable after the discount period.

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

2.

To determine

To Record: The payment of accounts payable after the discount period.

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

2.

To determine

To Record: The payment of accounts payable after the discount period.

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

2.

To determine

To Record: The payment of accounts payable after the discount period.

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Answer 6

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

Answer 7

Chapter 8, Problem 8.9E

1.

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.

To Record: The journal entry for purchase and payment.

Answer 8

2.

To determine

To Record: The payment of accounts payable after the discount period.

Answer 9

2.

To determine

To Record: The payment of accounts payable after the discount period.

Answer 10

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Answer 11

3.

To determine

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6Q Ch. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8Q Ch. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...

Solution Summary: The author explains the periodic inventory system, which is used to determine the amount of inventory at the end of each accounting period.

To Record: The payment of accounts payable after the discount period.

To Mention: The changes to the journal entries if perpetual method was used instead of periodic.

Want to see the full answer?

Chapter 8 Solutions