Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started