Answer:
The Journal entry of perpetual and a periodic inventory system is shown below:-
Explanation:
The Journal entry is shown below:-
For Perpetual system
1. Inventory Dr, $160,000
To accounts payable $160,000
(Being purchase of inventory is recorded)
2. Inventory Dr, $15,000
To cash $15,000
(Being cash is recorded)
3. Accounts payable Dr, $17,000
To Inventory $17,000
(Being returned of inventory is recorded)
4. Accounts receivable Dr, $255,000
To Sales revenue $255,000
(Being sales on account is recorded)
5. Cost of Goods sold Dr, $153,000
To Inventory $153,000
(Being cost of goods sold is recorded)
6. No Journal Entry
For Periodic inventory system
1. Purchase Dr, $160,000
To accounts payable $160,000
(Being inventory purchased is recorded)
2. Freight in Dr, $15,000
To cash $15,000
(Being freight charges for cash is recorded)
3. Accounts payable Dr, $17,000
To Purchase return $17,000
(Being returned of inventory is recorded)
4. Accounts receivable Dr, $255,000
To Sales revenue $255,000
(Being sales is recorded)
5. No Journal Entry
6. Cost of goods sold Dr, $153,000
Ending inventory Dr, $35,000
Purchase return Dr, $17,000
To Beginning inventory $30,000
To Purchases $160,000
To Freight in $15,000
(Being end-of-period is recorded)
