Recording Entries under the Periodic and Perpetual Inventory Systems

The records for Upland Inc. at December 31, 2020, show the following.

	Units	Unit Price
Sales during period (for cash)	10,000	$20 (sales price)
Inventory at beginning of period	2,000	$12 (cost)
Merchandise purchased during period (for cash)	16,000	$12 (cost)
Purchase returns during period (cash refund)	100	$12 (cost)
Inventory at end of period (physically counted)	7,900	$12 (cost)

Total expenses (excluding cost of goods sold), $60,000

a. Prepare entries for the transactions reflected above assuming a periodic inventory system.

b. Prepare entries for the transaction reflected above assuming a perpetual inventory system.

-------------------------------------------------------------------------------------------------------------------------------------------------------

______________________________________________________________________________________________________________________________________________

Periodic Perpetual a. Prepare entries for the transactions reflected above assuming a periodic inventory system for: 1. Merchandise sales. 2. Merchandise purchases. 3. Merchandise returns. 4. Total expenses. 5. To record cost of sales and any updated inventory balance. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) Account Name Dr. Cr. 1. Cash OX 0 Sales Revenue 0x 2. Purchases OX 0 Cash 0 0 x 3. Cash 0 X 0 Purchase Returns and Allowances 0 0 X 4. Expenses 0 X 0 Cash and Payables 0 0 X 5. Inventory, Ending 0 x 0 Purchase Returns and Allowances 0 X 0 Cost of Goods Sold 0 X 0 Purchases 0 0X Inventory, Beginning 0 0 X Periodic Perpetual b. Prepare entries for the transactions reflected above assuming a perpetual inventory system for: 1. Merchandise sales. 2. Merchandise purchases. 3. Merchandise returns. 4. Total expenses. 5. To record adjusting entry. If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) Dr. Cr. 0 0 0 0 X Account Name 1. Cash Sales Revenue To record sale of inventory. Cost of Goods Sold Inventory To record cost of sale of inventory 2. Inventory Cash OX 0 0 OX OX 0 0 0 X 0 x 0 0 0 X 3. Cash Inventory 4. Expenses Sales Revenue 0 X 0 X 0 0 X 5. N/A 0 0 N/A 0 07