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

    Feb 20, 2007, 08:01 AM
    How to prepare the general entry for perpetual inventory system
    Dec 1 sold merchandise on credit for 5,000, terms 3/10, n/30. The items sold had a cost of 3,500

    Dec 3 purchased merchandise for cash 720

    Dec 4 purchased merchandise on credit for 2600 terms 1/20, n/30

    Dec 5 issused a credit memorandum for 300 to a customer who returned merchandise purchased November 29, the return items had a cost of 210

    Dec 11 received payment for merchandise sold December 1

    Dec 15 received a credit memorandum for the return of faulty merchandise purchased on dec 4 for 600.

    Dec 18 paid freight charges of 200 for merchandise ordered last month. (FOB shipping point)

    Dec 23 paid for the merchandise purchased dec 4 less the portion that was returned

    Dec 24 sold merchandise on credit for 7,000 terms, 2/10 n/30 the items had a costof 4,900

    Dec 31 received payment for merchandise sold on dec 24
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Feb 20, 2007, 10:28 PM
    Nice transactions.

    What do YOU think the answers are?
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 [ 3 Answers ]

Perpetual Inventory system Number of units Unit cost Unit sale price Mar.1 Beginning Inventory 50 15 Mar.2 Purchase 12 20 Mar.8 Sale 40 36

FIFO and Perpetual Inventory [ 8 Answers ]

I have a question about a FIFO Perpetual Inventory. A company's transactions of cases for March. I have to make an Inventory Account Card. I don't get it; how much would be in the final inventory? For example if on March 7 he sold 15 of the 20 that he had so there would be 5 left right? And at...

Perpetual inventory system [ 3 Answers ]

:confused: Okay, this accounting class is not fun anymore! I would suggest to anyone, not to do online college with accounting. At least for me, it would help to actually have someone explain and show it to me. Anyway, I posted on my blackboard to no answers, have an assignment due tomorrow. ...

Perpetual Inventory system [ 1 Answers ]

Apr 2. Britt received an $18,000 invoice from one of its suppliers. Terms were 2/10 n/30, FOB shipping Point. Britt paid the freight bill amounting to $2,000. 4.Britt returned $2,500 of the merchandise billed on April 2 because it was defective. 5. Britt sold $8,000 of merchandise on account,...

Perpetual inventory method [ 1 Answers ]

I can't seem to figure out how to journalize some information using the Perpetual inventory method. Here is the information. a) Sold merchandise on account, for $10,000. The cost of the merchandise sold was $4,500. b) Sold merchandise to customers who used MasterCard and VISA, $8,500. The...

View more questions Search