The following transactions are from Sharper Vision Corporation Purchased inventory on December 10, 2020, with a list price of $9,750, a trade discount of 20 , and with terms 2 10, n 30 Returned $1,300 of inventory to the supplier on December 15, 2020 Paid $5,200 cash on account on December 19, 2020 Paid the remaining balance on January 5, 2021 Perpetual inventory system Periodic inventory system Prepare journal entries for transactions 1 through 4, assuming that the company uses the perpetual inventory system and the gross method for recording purchase discounts Date Account Name Dr Cr Dec 10, 2020 AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer Dec 15, 2020 AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer Dec 19, 2020 AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer Cash Answer Answer Jan 5, 2021 AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN A Answer Answer

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Posted on Sep 30, 2020

The following transactions are from Sharper Vision Corporation. Purchased inventory on December 10, 2020, with a list price of $9,750, a trade discount of 20%,

The following transactions are from Sharper Vision Corporation.

Purchased inventory on December 10, 2020, with a list price of $9,750, a trade discount of 20%, and with terms 2/10, n/30.
Returned $1,300 of inventory to the supplier on December 15, 2020.
Paid $5,200 cash on account on December 19, 2020.
Paid the remaining balance on January 5, 2021.

Perpetual inventory system
Periodic inventory system

Prepare journal entries for transactions 1 through 4, assuming that the company uses the perpetual inventory system and the gross method for recording purchase discounts.

Date	Account Name	Dr.	Cr.
Dec. 10, 2020	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
Dec. 15, 2020	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
Dec. 19, 2020	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
	Cash	Answer	Answer
Jan. 5, 2021	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer
	AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A	Answer	Answer