7-5 please use the periodic method. There are debits and credits for this proble

Question

7-5 please use the periodic method. There are debits and credits for this problem. Receipt of inventory. e You are asked to complete parts a, b, and c for thebooktrovie pecord each of the following transactions using the periodic method. wants you to provide information on the invenlory methods ton to the company. Purchased $7.900 of goods on account. The freight charges on the goods June 1 were $50. Found some of the goods from the June 1 purchase, costing $45, that were lunmaged and were returmed to the seller, the seller reduced the amount we owed by the $45- Some items costing $150 were not what we had ordered and could not be returned these items, and the supplier reduced the amount we owed. June 20 used. We retuned tes,ad s5o Paid the supplier the amount owed June 30 Periodic Inventory Entries: Dr Freisht-In Sales Retains4 Sales Reun A 22 ITORIES 7-15

Explanation / Answer

1. Purchase A/c.....................Dr 7900

Frieght ChargesA/c............Dr 50

..................To Accounts payable A/c..............7950

2. Accounts payable A/c...................Dr 45

............To Purchase Returns A/c......................45

3. Accounts payable A/c...................Dr 150

............To Purchase Returns A/c......................150

4. Accounts payable A/c...................Dr 7755

......................To Cash A/c...............................7755

Entry for closing stock

Inventory(Ending Inventory) A/c........Dr 20671

Cost of goods sold A/c......................Dr 82200(25632+77239-20671)

.............To Inventory(Beginning) A/c ..................25632

.............To Purchases A/c....................................77239(76216+2799-1776)

Thank You

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.