Rajiv. Co., had inventory and accounts payable of $110,000 on December 31, 20X7. Data for 20X8 follow:

------------------------------------------------------------------ Gross Purchases on Account $ 980,000 Cost of Goods Sold 920,000 Inventory 100,000 Purchase returns and Allowances 70,000 ------------------------------------------------------------------

By using the data, prepare comparative journal entries, including closing entries, for both a perpetual and periodic inventory system (Record debit first, then credits. Explanations are not required. For transactions, that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.)

Begin by preparing the journal entries for a perpetual inventory system.

a. Prepare the journal entry to record purchases on account, $980,000 b. Prepare the journal entry to record purchases return and allowances $70,000 c. Prepare the entry to related to the inventory cost (if required) d1. Record the entry (if required) related to the transfer of beginning inventory, purchases, and purchase related balances d2. Record the entry (if required) related to the ending inventory

Now prepare the journal entries for a periodic system.

a. Prepare the journal entry to record purchases on account, $980,000 b. Prepare the journal entry to record purchases returns and allowances $70,000 c. Prepare the entry to related to the inventory cost (if required) d1. Record the entry (if required) related to the transfer of beginning inventory, purchases, and purchase related balances d2. Record the entry (if required) related to the ending inventory

___________________________________________ Choose from

No entry required Accounts payable Cash Cash discounts on purchases Cost of goods sold Freight in Inventory Purchase returns and allowances Purchases ___________________________________________