Asked by Kayla Sanders on Jun 08, 2024
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Journalize the following transactions for Armour Inc. using both the periodic inventory system and the perpetual inventory system, presented in the side-by-side format of the form provided below.Oct. 7 Sold merchandise on credit to Rondo Distributors, terms n/30. The cost of the merchandise was $720.8 Purchased merchandise, $10,000, terms FOB shipping point, 2/15, n/30, with prepaid freight charges of $525 added to the invoice.? PERIODIC INVENTORY PERPETUAL INVENTORY SYSTEM SYSTEM~~~~~~~~~~~~~\textbf{PERIODIC INVENTORY}~~~~\textbf{PERPETUAL INVENTORY}\\~~~~~~~~~~~~~\textbf{SYSTEM}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\textbf{SYSTEM} PERIODIC INVENTORY PERPETUAL INVENTORY SYSTEM SYSTEM
DateDescription Dr.Cr.∣Description Dr.Cr.∣∣∣∣∣∣∣\begin{array} { | c | c | c | c | c | c | c | c | } \hline Date & Description~~~~ & Dr. & Cr. & \mid & Description~~~~~ & Dr. & Cr. \\\hline & & & & \mid & & & \\\hline & & & & \mid & & & \\\hline & & & & \mid & & & \\\hline & & & & \mid & & & \\\hline & & & & \mid & & & \\\hline & & & & \mid & & & \\\hline & & & & \mid & & & \\\hline\end{array}DateDescription Dr.Cr.∣∣∣∣∣∣∣∣Description Dr.Cr.
Periodic Inventory System
An inventory accounting system where inventory levels are updated and cost of goods sold is calculated at the end of an accounting period.
Perpetual Inventory System
A method of keeping track of inventory in real-time, where inventory levels are updated after every sale or purchase transaction.
FOB Shipping Point
A term used in shipping agreements indicating that the buyer is responsible for the cost of shipping and risk of loss from the shipping point.
- Learn how to journalize transactions for both periodic and perpetual inventory systems.
Verified Answer
Learning Objectives
- Learn how to journalize transactions for both periodic and perpetual inventory systems.
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