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When using perpetual inventory system the jounal entry to record the cost of merchandise sold is?
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The adjustment to record inventory shrinkage would increase merchandise inventory?
yes
When A buyer would record a payment within the discount period under a perpetual inventory system by crediting?
Inventory
What is merchandise inventory?
Merchandise inventory is the quantity of goods that are not being sold and will remain on the companyÕs record or with intent in re-selling the goods to the third party. Goods that are not sold can also be possibly returned to the suppliers.
When a buyer returns merchandise purchased for cash the buyer may record the transaction using the following entry?
debit cash; credit merchandise inventory
What is the difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
The adjustment to record inventory shrinkage would increase merchandise inventory?
yes
When A buyer would record a payment within the discount period under a perpetual inventory system by crediting?
Inventory
What is merchandise inventory?
Merchandise inventory is the quantity of goods that are not being sold and will remain on the companyÕs record or with intent in re-selling the goods to the third party. Goods that are not sold can also be possibly returned to the suppliers.
What is the journal entry to record a sale from inventory with a trade in?
Sales >>>Cash/Accounts Rec/NotesRec Cost of Goods Sold >>>Merchandise Inventory
When a buyer returns merchandise purchased for cash the buyer may record the transaction using the following entry?
debit cash; credit merchandise inventory
What type of inventory accounts would be used by a retailer?
A retailer would typically use several types of inventory accounts. These may include "Finished Goods Inventory" to track the products ready for sale, "Raw Materials Inventory" to monitor the materials used in production, "Work in Progress Inventory" to track partially completed products, and "Merchandise Inventory" to keep a record of goods purchased for resale. Additionally, there may be specific inventory accounts for perishable or seasonal items.
What is the difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
Journal entry to record physical inventory?
To record the purchase of physical inventory: Dr. inventory Cr. cash To record sale of physical inventory: Dr. cost of goods sold Cr. inventory
What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
What is manpower inventory?
Manpower inventory is the record of staffs in a commercial organisation.
Which subsidiary journal is used to record the inventory at the end of the year?
The subsidiary journal used to record inventory at the end of the year is the Inventory Adjustment journal. This journal is used to update the inventory records to reflect the actual quantity and value of inventory at the year-end.
What are the three columns in cash book?
Column one is used to record the sale of merchandise column two is used to record the return of merchandise column three is used to record the balance of cash in the cash book
