Ask Experts Questions for FREE Help !
Ask
    jlambert797's Avatar
    jlambert797 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jun 22, 2009, 01:59 PM
    Perpetual inventory system
    How would you journalize a transaction under a perpetual accounting system if your company purchased items on account for $2000 from another company, FOB destination, terms 2/10, n/30? And how do you journalize the appropriate party making a cash payment of $150 for the freight?
    Barharb hogans's Avatar
    Barharb hogans Posts: 2, Reputation: 1
    New Member
     
    #2

    Jun 27, 2009, 06:31 AM

    In a pertpetual inventory system, the cost of inventory sold is what? Debitedto cost of goods sold
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #3

    Jun 30, 2009, 11:05 AM

    Debit Inventory 2,000
    Credit Accounts payable 2,000

    Debit Freight in 150
    Credit cash 150

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Perpetual inventory system [ 1 Answers ]

The physical inventory at year-end disclosed a normal amount of inventory shrinkage My ans: debit AR and credit Cash is this the correct entry Make an entry to close the revenue account My ans: debit inventory and credit revenue is this the correct entry Made an entry at year-end to close...

Determine the ending inventory under a perpetual inventory system [ 1 Answers ]

Hi ! I've honestly spent a long time trying to figure this out, but I keep getting the answer wrong and I'm not sure how I should go about this question. I'm not asking for you to just give me the answer, if you have time to give a little explanation that would be nice so I could understand what...

Perpetual inventory system [ 1 Answers ]

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...

Perpetual Inventory system [ 2 Answers ]

How is the cost of goods calculated using the perpetual inventory accounting system

Perpetual Inventory System [ 1 Answers ]

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...


View more questions Search