Answer:
Perpetual Inventory System:
1) Dr Inventory 157,000
Cr Accounts Payable 157,000
2) Dr Inventory 12,000
Cr Cash 12,000
3)Dr Accounts Payable 14,000
Cr Inventory 14,000
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
5) Dr Cost of Goods Sold 150,000
Cr Inventory 150,000
6) No entry
Periodic Inventory System:
1)Dr Purchases 157,000
Cr Accounts Payable 157,000
2) Dr Freight - in 12,000
Cr Cash 12,000
3) Dr Accounts Payable 14,000
Cr Purchase Returns 14,000
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
5) No entry
6) Dr Cost of Goods Sold 150,000
Dr Ending Inventory 32,000
Dr Purchase Returns 14,000
Cr Beginning Inventory $27,000
Cr Purchases 157,000
Cr Freight - in $12,000
Explanation:
Preparation of the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
PERPETUAL INVENTORY SYSTEM:
1) Dr Inventory 157,000
Cr Accounts Payable 157,000
(To record the purchase of inventory on account)
2) Dr Inventory 12,000
Cr Cash 12,000
(To record the payment of freight charges by cash)
3)Dr Accounts Payable 14,000
Cr Inventory 14,000
(To record the return of inventory purchased on account)
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
(To record the sales made on account)
5) Dr Cost of Goods Sold 150,000
Cr Inventory 150,000
(To record the cost of goods sold)
6) No entry
PERIODIC INVENTORY SYSTEM:
1)Dr Purchases 157,000
Cr Accounts Payable 157,000
(To record the purchase of inventory on account)
2) Dr Freight - in 12,000
Cr Cash 12,000
(To record the payment of freight charges by cash)
3) Dr Accounts Payable 14,000
Cr Purchase Returns 14,000
(To record the return of inventory purchased on account)
4) Dr Accounts Receivable 252,000
Cr Sales Revenue 252,000
(To record the sales made on account)
5) No entry
6) Dr Cost of Goods Sold 150,000
Dr Ending Inventory 32,000
Dr Purchase Returns 14,000
Cr Beginning Inventory $27,000
Cr Purchases 157,000
Cr Freight - in $12,000
(To record the adjusting entry for inventory)
