1-If you firm uses the perpetual method, it records purchase returns for cash by:

a- Debiting Merch Inventory
b- Crediting Merch Inventory
c- Crediting Purchases returns & allowances
d- Crediting cost of goods sold


2- Uses the perpetual method, purchases inventory for $10,000 @ 2/10 net 30, records the purchase as shown below, and pays in full after the discount period, what should I do?

Mech Inventory 9,800
Accounts Payable 9,800

a- Debit AP for 10,000
b- Debit Purchase discounts lost for 200
c- Credit purchase discounts lost for 200
d- Credit mech inventory for 200

3- Perpetual method, how do I record on the date of sale an 5,000 cash sale of inventory that cost 2,000? Is the answer. help

Cash 5,000
Cost of good sold 2,000
Merch inventory 5,000
Sales 2,000

babykat

1. b
2. a
3. Cash 5,000
Sales 5,000

Cost of sales 2,000
Mdse. Invty 2,000

thu379

1.Sold goods for R8,200 cash (cost price 4100)
2.Paid wages of R1,000
3.Bought stationery for R700
4.Paid creditors an amount of R1,400
5.The owner deposited R60,000 into the bank
6.Received R2,100 from a debtor
7.Sold goods on credit for R10,000(cost price R5,)000
8.Purchacsed equipment , paid R35,000 by cheque
9.Received R11,000 from the bank as a loan
10.Bought stationery for R8,000 cash
11.The owner took stock for his own use with a cost value of R1,000
12.Paid R5,000 to the bank (R2,000 part payment of loan ,R2,500 interest on loan)