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A company uses a perpetual system to record inventory transactions The company purchases inventory on account on February

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.

Jan 27 2020 View more View Less

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