A company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 9, 2015, for $50,000 and then sells this inventory on account on March 7, 2015, for $70,000. Record the transactions for the purchase and sale of the inventory.
157. A company has the following transactions during March:
March 3 Purchases inventory on account for $3,500, terms 2/10, n/30.
March 5 Pays freight costs of $200 on inventory purchased on March 3.
March 6 Returns inventory with a cost of $500.
March 12 Pays the full amount due on March 3 purchase.
March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account.
Record all transactions, assuming the company uses a perpetual inventory system.
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