5. Shown below are selected transactions of alpha store that uses a perpetual inventory system. a) Purchased merchandise on account worth $ 500 b) Revenue worth S 800 from a sale of all merchandise on account.

5. Shown below are selected transactions of alpha store that uses a perpetual inventory system. a) Purchased merchandise on account worth $ 500 b) Revenue worth S 800 from a sale of all merchandise on account.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 24MC: Which of the following accounts are used when recording a purchase using a periodic inventory...

See similar textbooks

Related questions

Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…

A: Net cost of purchases = Purchases - Purchase Returns and Allowances - Purchase Discounts +…

Q: When merchandise purchased on account is returned under the perpetual inventory system, the buyer…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Journalize each of the following transactions assuming a perpetual inventory system. April 5 Sold…

A: Financial transactions are initially recorded in the form of journal entry.

Q: Assume that Ivanhoe Company uses a periodic inventory system and has these account balances:…

A: Net purchases refer to the purchase cost reduced by returns, allowances and discount availed on such…

Q: 6-An item of merchandise was sold for RO 1600 cash by a business using the perpetual inventory…

A: Please see the next step for the solution

Q: Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry…

A: Inventory system of book keeping means where proper books of account relating to inventory has been…

Q: Presented below is a list of items that may or may not be reported as inventory in a company’s…

A: Introduction:- Inventories” means as follows under:- Inventories are Held for sale in the ordinary…

Q: Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual…

A: The journal keeps the record of day to day transactions of the business.

Q: The transactions that follow took place under the perpetual inventory system. Record each…

A: Ledgers are the accounts prepared by a business to prepare the financial statements and contains as…

Q: Cc stores is registered with vat Uses the perpetual inventory system. The following transactions…

A: Perpetual inventory system is one of the inventory system under which all transactions related to…

Q: Recorded of cash sales (cost of sales $o.200). 3 Purchased $11.000 of merchandise inventory for…

A: Journal entries refers to the process of systematic documentation or recording of all the financial…

Q: The Merchandise Inventory account balance is $56,000. A physical count of inventory reveals that the…

A: SOLUTION- AS PER THE INFORMATION GIVEN IN THE QUESTION WE HAVE- ACTUAL MERCHANDISE INVENTORY =…

Q: Assume that Marigold Corp. uses a periodic inventory system and has these account balances:…

A: Calculate net purchases.

Q: Under the periodic inventory system, which of the following accounts is debited when inventory is…

A: Solution:- Under the periodic inventory system the following accounts is debited when inventory is…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Please record the entries for the inventory purchase transactions below (Perpetual Inventory System)…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: a. Sampson Co. sold merchandise to Batson Co. on account, $32,20o, terms 2/15, net 45. b. The cost…

A: Journal entries in the books of Sampson Co. sales discount = $32,200* 2% =…

Q: Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases.…

A: Cash paid = Net purchase - discount amount where, Net purchase = Purchases - purchase return…

Q: Using the following information, what is the amount of merchandise available for sale? Purchases…

A: Formula: Cost of goods available for sale = Beginning inventory + Net purchases

Q: An item of merchandise was sold for RO 1600 cash by a business using the perpetual inventory system.…

A: Cost of goods sold is RO 1200. Inventory (asset) of RO 1200 has been decreased and cost of goods…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: As per perpetual inventory system, merchandise inventory account is used instead of purchase…

Q: Under the periodic inventory system, the entry to record a purchase of P60,000, with terms 2/10.…

A: A periodic inventory system refers to accounting for purchases and sales directly in books and…

Q: Journalize each of the following transactions assuming a perpetual inventory system. April 5 Sold…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage = Inventory as per books - Inventory as per count = $44800-42950 = $1,850

Q: A company uses the perpetual inventory system and recorded the following entry: 2,500 Accounts…

A: Accounts payable is the amount owed by an entity to its suppliers/vendors for the goods and services…

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of Goods Sold(COGS) is total which is incurred by business firm to produce the trading product…

Q: Below are transactions completed by Bijan Sdn Bhd in August 2019. Bijan Sdn Bhd uses the perpetual…

A: Journal entries are the primary step of recording the transaction in the books of account. Journal…

Q: Presented below is a list of items that may or may not be reported as inventory in a company’s…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: On April 208, Jack traders purchased RO 25,500 of merchandise and paid cash .What is the journal…

A: Under Perpetual inventory system inventory balances are updated after every transaction. It is also…

Q: A Retail Merchandiser was using Perpetual inventory method. The business bought OMR 40,000 of…

A: An entity can either use the periodic inventory method or the perpetual inventory method to record…

Q: Presented below are transactions related to Sheridan, Inc. Sheridan uses the periodic inventory…

A: CASH DISCOUNT IS THE DEDUCTION GIVEN BY THE SELLER OF THE GOODS OR PROVIDER OF SERVICES TO ENCOURAGE…

Q: Purchased 55,100 of merchandise from Schell account, terms 1/10, n/30 paid the amount owed on the…

A: Journal Entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month…

A: As per First in First Out method(FIFO) inventory sold is from units purchased earlier, therefore…

Q: Under the perpetual inventory system, all purchases of merchandise are debited to the account…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account…

A: The financial statement includes income statement, statement of stockholder’s equity and balance…

Q: Assume the perpetual inventory system is used. Sales $642,363 Merchandise Inventory 582,620 Sales…

A: Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts. Net…

Q: Mayfair Co. completed the following transactions and uses a perpetual inventory system. June 4 Sold…

A: Funds refers to an amount of money which is set aside or saved by individuals, government,…

Q: Which of the following accounts would be included in the chart of accounts of a merchandising…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Closing entries are reported in the books to close the temporary accounts such as expenses and…

Q: In a perpetual inventory system, purchases of merchandise on account are recorded by debiting: a…

A: In a perpetual inventory system, Purchases account is not maintained because inventory account is…

Q: Journalize the following merchandise transactions, using the net method under a perpetual inventory…

A: Merchandise Inventory: Products that a firm acquires with the intention of reselling to clients at a…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Please solve within 30 minutes

5. Shown below are selected transactions of alpha store that uses a perpetual inventory system.
a) Purchased merchandise on account worth $ 500
b) Revenue worth $ 800 from a sale of all merchandise on account.
VV 1iat -

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.
Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a )a. debit to Sales Ob. debit to Merchandise Inventory Oc. credit to Accounts Receivable Od. credit to Merchandise Inventory
4-Which account will be credited to record the Sale of merchandise on credit under periodic inventory method? a. Accounts receivable b. Purchase c. Sales d. Accounts payable
Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry to record the purchase will include a debit to Cash and a credit to Sales.
When the perpetual inventory system is used, the inventory sold is debited to a. Cost of Merchandise Sold Ob. Merchandise Inventory Oc. Sales Od. Supplies Expense
The journal entry for the purchase of inventory on account using the perpetual inventory system is O A. O B. O C. O D. Accounts and Explanation Merchandise Inventory Accounts Payable Accounts and Explanation Merchandise Inventory Cash Accounts and Explanation Accounts Payable Merchandise Inventory Accounts and Explanation Merchandise Inventory Accounts Receivable Debit XXX Debit XXX Debit XXX Debit XXX Credit XXX Credit XXX Credit XXX Credit XXX
Give the amounts for the following items in the Merchandise inventory account. a. beginning balance (BB) b. Trasnfers-in (TI) c. Ending balance (EB) d. Transfers-out (TO)
When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry? Da. debit Merchandise Inventory; credit Cash Discounts Ob. debit Merchandise Inventory; credit Purchases Oc. debit Accounts Payable; credit Merchandise Inventory Od. debit Merchandise Inventory; credit Accounts Payable
Find: 1 ) Ending inventory , CGS, 2 ) Total Sales , Gross profit 3 ) Journal entries of sales , CGS . All sales on account. FIFO Strictly.
a. Chapters 1-7 G Traducir antaFe iriclars Sotems TB MC Qu. 6-137 Using a perpetual inventory system, how... Using a perpetual Iventory system, how should a company record the sale of Inventory costing $550 for $1,170 on account? 1. InventorY 550 Cost oE GOods Sold 550 Sales Revenue 1,170 Accounts Receivable 1,170 2. Accounts Receivable 1,170 Sales Revenue 1,170 Cost of Goods Sold 550 Inventory 550 550 3. Inventory 620 Gain 1,170 Sales Revenue 1,170 Accounts Receivable 550 Sales Revenues 620 Gain Multiple Choice Ne
a. Journalize Sayers' entries to record the sale, using the net method under a perpetual inventory system. If an amount box does not require an. entry, leave it blank. Accounts Receivable V 88,200 Sales v 88,200 Cost of Goods Sold v 6,100 Inventory 6,100 b. Journalize the receipt of payment within the discount period. If an amount box does not require an entry, leave it blank. Cash v 88,200 Accounts Receivable 88,200 c. Journalize the entry to record the receipt of payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank. Cash v 90,000 Accounts Receivable v 1,800 Sales v 88,200
2. The entry to record the return of $25 of inventory to a supplier under the perpetual inventory system is recorded with a debit to accounts payable and a credit to purchase discounts. Opurchase returns and allowances and a credit to accounts payable. Oaccounts payable and a credit to inventory. Oinventory and a credit to accounts payable.