I am confused! I am able to calculate the Perpetual Inventory system using the LIFO, FIFO, and Average Cost. However I do not know how to compute sale returns and purchase returns.

Example:

Dec. 31 Ending inventory 160 units @ $18
Jan. 2 Purchase 100 units @$20
Jan. 6 Sale 180 units @$40
Jan. 9 Sale Returns 10 units @ $40
Jan. 9 Purchase 75 units @$24
Jan.10 Purchase Return 15 units @$24

Please show me a perpetual inventory. I am taking my test next week and would appreciate any help

Here is a website that can explain the details of the Perpetual Inventory Method. It was very helpful for me. Just type in the address. Hope this helps


Online Accounting Course | Inventory and Cost of Goods Sold (2)