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Periodic Inventory System

PERIODIC INVENTORY SYSTEM. I only need assistance with the PERIODIC INVENTORY SYSTEM portion of this assignment. THe portion in red ONLY. Please explain the attached problem. I am having a hard time getting this one and I really need assistance.

QS 5-1:

Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system.

Mar. 5 Purchased 600 units of product with a list price of $10 per unit. The purchase is
granted a trade discount of 20%; term of the sale are 2/10, n/60; invoice is dated
March 5.
Mar. 7 Returned 25 defective units from the March 5 purchase and received full credit.
Mar. 15 Paid the amount due from the March 5 purchase, less the return on March 7.

QS 5-9A:
Refer to QS 5-1 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.

QS 5-2:

Prepare journal entries to record each of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system.

Apr. 1 Sold merchandise for $3,000, granting the customer terms of 2/10, EOM;
invoice dated April 1. The cost of the merchandise is $1,800.
Apr. 4 The customer in the April 1 sale returned merchandise and received credit $600.
The merchandise, which had cost $360, is returned to inventory.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on
April 4.

QS 5-10A:
Refer to QS 5-2 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.

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QS 5-1:

Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system.

Mar. 5 Purchased 600 units of product with a list price of $10 per unit. The purchase is
granted a trade discount of 20%; term of the sale are 2/10, n/60; invoice is dated
March 5.
Mar. 7 Returned 25 defective units from the March 5 purchase and received full credit.
Mar. 15 Paid the amount due from the March 5 purchase, less the return on March 7.

QS 5-9A:
Refer to QS 5-1 and prepare journal entries to record each of the merchandising transactions assuming that the ...

Solution Summary

The solution explains the journal entries in a periodic inventory system

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