Asked by Alexis Singleton on May 18, 2024
Verified
Using the perpetual inventory system, journalize the entries for the following selected transactions:
(a)Sold merchandise on account for $12,000, terms n/30. The cost of the goods sold was $6,500.(b)Sold merchandise to customers who used MasterCard and VISA, $9,500. The cost of the goods sold was $5,300.(c)Sold merchandise to customers who used American Express, $2,900. The cost of the goods sold was $1,700.(d)Paid an invoice from First National Bank for $385, representing a service fee for processing MasterCard and VISA sales.(e)Paid an invoice from American Express for $75 fee.
Perpetual Inventory System
A digital system for inventory management that immediately documents any inventory sale or purchase using electronic point-of-sale systems along with enterprise asset management software.
MasterCard and VISA
Major global payment networks and companies facilitating electronic funds transfers through branded credit, debit, and prepaid cards.
Service Fee
A charge for the provision of a service, often separate from the cost of goods sold.
- Embrace and apply the perpetual inventory system for the purpose of transaction documentation.
Verified Answer
AS
Learning Objectives
- Embrace and apply the perpetual inventory system for the purpose of transaction documentation.