Under a perpetual inventory system a. accounting records continuously disclose the amount of inventory b. increases in inventory resulting from purchases are debited to Purchases c. there is no need for a year-end physical count d. the purchase returns and allowances O account is credited when goods are returned to vendors

Under a perpetual inventory system a. accounting records continuously disclose the amount of inventory b. increases in inventory resulting from purchases are debited to Purchases c. there is no need for a year-end physical count d. the purchase returns and allowances O account is credited when goods are returned to vendors

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...

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Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?
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Under the periodic inventory system, what account is debited when an estimate is made for the cost of merchandise inventory sold this year, but expected to be returned next year? (a) Estimated Returns Inventory (b) Sales Returns and Allowances (c) Merchandise Inventory (d) Customer Refunds Payable
Under the periodic inventory system, what account is credited when an estimate is made for sales made this year, but expected to be returned next year? (a) Merchandise Inventory (b) Customer Refunds Payable (c) Sales (d) Sales Returns and Allowances
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
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Under the perpetual inventory system, how does the seller record sales made on account?
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