A merchandiser sold merchandise inventory on account. the journal entry to record a sales allowance in the books of the merchand

Question

Vlad1618 [11]

1 year ago

11

A merchandiser sold merchandise inventory on account. the journal entry to record a sales allowance in the books of the merchand

iser, using the perpetual inventory system would be:________

Business

1 answer:

mars1129 [50] · Answer 1 · 2023-12-16T06:58:15+03:00

The journal entry would be to debit the Sales allowance account and credit the merchandise account. This is because the sales allowance is an expense for the merchandiser so it will be debited and the person he is selling the merchandise to will be credited as the rule states to credit the receiver. These rules will be according to the golden rules of accounts.

So the journal entry will be Sales allowance a/c Dr.

To Merchandise a/c.

A perpetual inventory system is a computerized system to record inventory immediately. It is an automatic system and happens at the point of sale. By this method, the seller is able to keep aware of his inventory information immediately. This system uses computerized point-of-sale systems and enterprise asset management software.

This type of perpetual inventory system is usually used by grocers to keep an account of their goods. This makes their work much more efficient and easy.