Question
A: ABC Company uses the perpetual inventory system and had the following transactions during August 2018: Date Transaction Amount June . 5 Purchased inventory on
A: ABC Company uses the perpetual inventory system and had the following transactions during August 2018:
DateTransactionAmount
June. 5Purchased inventory on account$ 240,000
June. 9Paid for transportation of goods purchased25,000
June. 10Returned defective merchandise to the seller35,000
June. 15Paid for goods purchased on August 5?
Credit terms of invoice are 2/15, n/45.
Required: Prepare the general journal entries to record these transactions. Explanations are not required.
B: Xcite Company uses Perpetual Inventory System. The following information is available for the month of March:
Mar. 1 Beginning inventory 200 units @$15
Mar. 5 Purchased 80 units @$18
Mar. 10 Sold 120 units @$30
Mar.15 Purchased 140 units @$20
Mar.25 Sold 100 units @$30
Required:
Prepare perpetual inventory record for Xcite Company using LIFO inventory costing method.
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