Perpetual Inventory System General Journal General Ledger Description Debit Credit Mdse Inventory Mdse Inventory AAccts.payable 5,000 5,000 A5,0001000(B 2500(c B Accts Payable 1,000 Ba1,500 Mdse Inventory 1000 Accts. Receivable 3,250 Cost of Mdse. Sold Sales 3,250 2,500 Cost of Mdse. Sold 2,500 Mdse Inventory 2,500 In a perpetual system, A Purchase on account Mdse Inventory is an BReturn of merchandise active asset account All changes are recorded Sale of merchandise as they occur. c5-11
C5 - 11 Perpetual Inventory System General Journal Description Debit Credit General Ledger Mdse. Inventory 5,000 Accts. Payable 5,000 Accts. Payable 1,000 Mdse. Inventory 1,000 Accts. Receivable 3,250 Sales 3,250 Cost of Mdse. Sold 2,500 Mdse. Inventory 2,500 Mdse. Inventory A 5,000 Cost of Mdse. Sold 2,500 Purchase on account Return of merchandise Sale of merchandise A 1,000 B B C 2,500 C 1,500 C Bal A B C In a perpetual system, Mdse. Inventory is an active asset account. All changes are recorded as they occur
Perpetual Inventory System General Journal General Ledger Description Debit Credit Mdse Inventory Mdse Inventory 5,000 Accts Payable 5,000 A5,0001000(B 2500(c B Accts Payable 1,000 Mdse Inventory Ba1,500 1,000 Accts. Receivable 3,250 Cost of Mdse. Sold Sales 3,250 2,500 Cost of mdse. Sold 2,500 Mdse Inventory 2,500 In a perpetual system, A Purchase on account Mdse Inventory is an BReturn of merchandise active asset account All changes are recorded Sale of merchandise as they occur. c5-12
C5 - 12 Perpetual Inventory System General Journal Description Debit Credit General Ledger Mdse. Inventory A 5,000 Cost of Mdse. Sold 2,500 Purchase on account Return of merchandise Sale of merchandise A 1,000 B B C 2,500 C 1,500 C Bal A B C In a perpetual system, Mdse. Inventory is an active asset account. All changes are recorded as they occur. Mdse. Inventory 5,000 Accts. Payable 5,000 Accts. Payable 1,000 Mdse. Inventory 1,000 Accts. Receivable 3,250 Sales 3,250 Cost of Mdse. Sold 2,500 Mdse. Inventory 2,500
Credit Terms. Cash Discounts Credit Terms: 2/10.n/30 Is invoice paid within 10 Full am ount is due days of No within 30 days of Invoice invoice date date? c5-13
C5 - 13 Credit Terms, Cash Discounts Credit Terms: 2/10, n/30 Is invoice paid within 10 days of invoice date? Full amount is due within 30 days of invoice date. No