You are watching: When using a perpetual inventory system, why are discounts credited to inventory?
Financial indevelopment is presented below:Operating prices $ 25000Sales revenue 175000Cost of items sold 125000Gross profit would be
Tony"s Market supplied the perpetual approach to document the complying with events involving a current purchase of inventory:Received items for $79000, terms 2/9, n/30.Returned $1200 of the shipment for credit.Phelp $400 freight on the distribution.Phelp the invoice within the discount period.As an outcome of these occasions, the company"s inventory
The discounts are debited to discount price and thus the crmodify hregarding be made to merchandise inventory.***The discounts mitigate the expense of the inventory.The discounts are a reduction of business costs.None of these answers choices are correct.
A agency making use of a perpetual inventory mechanism that returns goods formerly purchased on crmodify would
delittle bit Accounts Payable and crmodify Purchases.debit Cash and also credit Accounts Payable.***delittle Accounts Payable and also crmodify Inventory.delittle Sales and credit Accounts Payable.
The purchaser"s journal enattempt to record a return of merchandise purchased on account under a perpetual inventory device would credit
Financial information is presented below:Operating costs $ 61000Sales retransforms and also allowances 6000Sales discounts 7000Sales revenue 168000Cost of products sold 86000The amount of net sales on the revenue statement would be
Under the perpetual device, cash freight expenses incurred by the buyer for the moving of goods is recorded in which account?
Concord Corporation sells $3000 of merchandise on account to Baltic Company kind of with credit regards to 2/7, n/30. If Baltic Company kind of remits a inspect taking benefit of the discount available, what is the amount of Baltic Company"s check?
Wildsteed Co. sells merchandise on account for $2800 to via credit regards to 2/8, n/30. Marigold Corp. returns $800 of merchandise that was damaged, along with a inspect to work out the account within the discount duration. What enattempt does Wildsteed Co. make upon receipt of the check?
Fundapsychological Financial Accounting Conceptsninth EditionChristopher Edmonds, Frances M McNair, Philip R. Olds, Thomas P. Edmonds
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