D. A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning ot the year $4,000; Transportation-in, $450; Purchases, $12,000; Purchases Returns and Allowances, $2,300; Purchases Discounts, $220; Transportation-Out, $500. Calculate a) Net Purchases and b) the cost of merchandised purchased. C) Assuming the cost of merchandise on hand at the end of the period is $1,200, what is the cost of goods sold? E. What is the primary difference between periodic inventory and perpetual inventory system? F. When goods are shipped FOB destination and the seller pays the transportation charges, do both seller and buyer make journal entries for the transportation charge? Discuss. G. X sold Y merchandise on account FOB Shipping point, 2/10, net 30, for $10,000. X prepaid the $200 shipping charge. Make necessary entries for transaction in the book of X as well as in the book of Y. H. Using the perpetual inventory system, journalize the entries for the following selected transactions: a) Sold merchandise on account, for $10,000. The cost of the merchandise sold was $4,500. b) Sold Merchandise to customers who used MasterCard and VISA, $8,500. The cost of the merchandise sold was $4,100 c) Sold merchandise to customers who used American Express, $3,500. The cost of the merchandise sold was $1,600. d) Paid an invoice from First National Bank for $255, representing a service fee for processing Mastercard and VISA sales. e) Received $3,325 from American Express Company after a $175 collection fee had been deducted D. A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning ot the year $4,000; Transportation-in, $450; Purchases, $12,000; Purchases Returns and Allowances, $2,300; Purchases Discounts, $220; Transportation-Out, $500. Calculate a) Net Purchases and b) the cost of merchandised purchased. C) Assuming the cost of merchandise on hand at the end of the period is $1,200, what is the cost of goods sold? E. What is the primary difference between periodic inventory and perpetual inventory system? F. When goods are shipped FOB destination and the seller pays the transportation charges, do both seller and buyer make journal entries for the transportation charge? Discuss. G. X sold Y merchandise on account FOB Shipping point, 2/10, net 30, for $10,000. X prepaid the $200 shipping charge. Make necessary entries for transaction in the book of X as well as in the book of Y. H. Using the perpetual inventory system, journalize the entries for the following selected transactions: a) Sold merchandise on account, for $10,000. The cost of the merchandise sold was $4,500. b) Sold Merchandise to customers who used MasterCard and VISA, $8,500. The cost of the merchandise sold was $4,100 c) Sold merchandise to customers who used American Express, $3,500. The cost of the merchandise sold was $1,600. d) Paid an invoice from First National Bank for $255, representing a service fee for processing Mastercard and VISA sales. e) Received $3,325 from American Express Company after a $175 collection fee had been deducted
