Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pleas i need the answer about one hours Mr. Ahmad, the owner of Bundle Sdn Bhd, has adopted the perpetual inventory system instead of periodic

pleas i need the answer about one hours

Mr. Ahmad, the owner of Bundle Sdn Bhd, has adopted the perpetual inventory system instead of periodic inventory system to ensure the companys control over the inventory. In addition, he plans to perform a physical stock count every quarter until he is confidence with the reliability of the perpetual inventory system.

Required:

a. Explain the difference between perpetual inventory system and periodic inventory system.

b. If perpetual inventory system is able to enhance the control over the inventory, why does Mr Ahmad need to carry out stock count.

c. Suppose that Bundle Sdn Bhd has an unadjusted balance of $10,600 in the Merchandise Inventory account. Bundle Sdn Bhd determines that the actual merchandise inventory physically counted at year-end is $10,000. How would be the adjusting entry to account for the difference between the inventory balance as per stock count and the inventory account.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting Hc 2002 Text Only

Authors: Folk

1st Edition

0071123350, 978-0071123358

More Books

Students also viewed these Accounting questions

Question

What is dividend payout ratio ?

Answered: 1 week ago

Question

Explain the factors affecting dividend policy in detail.

Answered: 1 week ago

Question

10. Describe the relationship between communication and power.

Answered: 1 week ago