You are watching: When using a perpetual inventory system, why are discounts credited to inventory?
Financial indevelopment is presented below:Operating prices $ 25000Sales revenue 175000Cost of items marketed 125000Gross profit would be
Tony"s Market supplied the perpetual strategy to record the adhering to occasions including a recent purchase of inventory:Received products for $79000, terms 2/9, n/30.Returned $1200 of the distribution for crmodify.Phelp $400 freight on the shipment.Phelp the invoice within the discount period.As an outcome of these occasions, the company"s inventory
The discounts are debited to discount cost and also hence the credit hregarding be made to merchandise inventory.***The discounts mitigate the expense of the inventory.The discounts are a reduction of company prices.Namong these answers options are correct.
A agency making use of a perpetual inventory device that returns products previously purchased on crmodify would
delittle bit Accounts Payable and also credit Purchases.delittle bit Cash and crmodify Accounts Payable.***delittle Accounts Payable and credit Inventory.debit Sales and also crmodify Accounts Payable.
The purchaser"s journal entry to record a rerevolve of merchandise purchased on account under a perpetual inventory device would credit
Financial indevelopment is presented below:Operating expenses $ 61000Sales retransforms and also allowances 6000Sales discounts 7000Sales revenue 168000Cost of items offered 86000The amount of net sales on the earnings statement would certainly be
Under the perpetual system, cash freight expenses incurred by the buyer for the carrying of items is tape-recorded in which account?
Concord Corporation sells $3000 of merchandise on account to Baltic Company via credit regards to 2/7, n/30. If Baltic Company type of remits a examine taking advantage of the discount offered, what is the amount of Baltic Company"s check?
Wildequine Co. sells merchandise on account for $2800 to via crmodify terms of 2/8, n/30. Marigold Corp. returns $800 of merchandise that was damaged, together with a examine to settle the account within the discount period. What entry does Wildhorse Co. make upon receipt of the check?
Fundamental Financial Accounting Conceptsninth EditionChristopher Edmonds, Frances M McNair, Philip R. Olds, Thomas P. Edmonds
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