Perpetual and Periodic Inventory Systems
The following inventory information is for Stevenson Company.
|
Beginning inventory |
200 units @ $8 |
|
Purchases |
350 units @ $8 |
|
Ending inventory |
100 units |
Sales for the year totaled $5,900. All sales and purchases are on account.
1. Make the journal entries necessary to record purchases and sales during the year assuming a periodic inventory system.
2. Assume that a periodic inventory system is used. Compute cost of goods sold.
3. Assume that a perpetual inventory system is used. The perpetual records indicate that the sales of $5,900 represent 400 units with a total cost of $3,200. Make the journal entries necessary to record purchases, sales, and inventory shrinkage for the year.