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-   -   Perpetual inventory system (https://www.askmehelpdesk.com/showthread.php?t=316287)

  • Feb 11, 2009, 04:40 PM
    xexyanna16
    Perpetual inventory system
    Using the method perpetual inventory system, how can I record in the journal entries this transactions:
    1-John's purchased merchandise on account for $5000.00. Freight charges of $300.00 were paid in cash.

    2-John's returned some of the merchandise purchased in 1. The cost of the merchandise was $600.00 and John's account was credited by the supplier.

    3-Merchandise costing $2800.00 was sold for $5200.00 in cash.

    I think this a correct answer for # 1. If not can someone tell me..?

    Debit credit
    1- Inventory... $5300
    Accounts payable... $5300

    Inventory... $300
    Cash... $300
  • Feb 11, 2009, 05:22 PM
    pready

    Debit Inventory for 5,300
    Credit Cash for 300
    Credit Accounts Payable for 5,000

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