Perpetual Inventory System

nikapatterson · #1 Feb 3, 2008, 10:01 AM

Hello-

Please help with this scenario below

International Galleries, Ltd., which maintains a perpetual inventory system on its works of art, has just sold for $5,000 cash a painting which it originally purchased on account for $3,000. In the journal below, record the sale transaction both as to selling price and cost. To the right of each account title, write (A), (L), (OE), (R) or (E) to represent the category of the account.

Thanks-

Nika

MaggieMouse · Feb 3, 2008, 12:17 PM

Dr. Cash (A)
Cr. Revenue (R)

Dr. Inventory (A)
Cr. COGS (E)



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!