Question

Bingerton Industries uses a perpetual inventory system. The company began the year with an inventory of $93,000. Purchases of inventory on account during the year totaled $318,000. Inventory costing $343,000 was sold on account for $536,000. Record the transactions for the purchase and sale inventory.

Answer 1

Answer:

Bingerton Industries

Perpetual Inventory System

Merchandise Inventory      $318,000 Dr

Accounts Payable     $ 318,000 Cr

Purchases of inventory on account during the year totaled $318,000.

Accounts Receivable   $ 536,000Dr.

Sales   $ 536,000 Cr.

Cost of Goods Sold  $ 343,000 Dr.

Merchandise Inventory $ 343,000 Cr.

Inventory costing $343,000 was sold on account for $536,000