Discuss the concept of perpetual inventory system

Assignment Help Finance Basics

Reference no: EM131520965

Question: Littleton Books has the following transactions during May.

May 2 Purchases books on account from Readers Wholesale for $2,300, terms 2/10, n/30.

May 3 Pays freight costs of $100 on books purchased from Readers.

May 5 Returns books with a cost of $300 to Readers because part of the order is incorrect.

May 10 Pays the full amount due to Readers.

May 30 Sells all books purchased on May 2 (less those returned on May 5) for $3,000 on account. Required:

1. Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system.

2. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment.

Reference no: EM131520965

Questions Cloud

Firm needs to plow back earnings to fuel growth : the firm needs to plow back its earnings to fuel growth. If the required return on this stock is 13.5 percent what is the current share price?

Issue of preferred stock outstanding-what is required return : Smiling Elephant. Inc.. has an issue of preferred stock outstanding that pays a $5.80 dividend every year, in perpetuity.

Calculate cost of goods sold for the year : Russell Retail Group begins the year with inventory of $45,000 and ends the year with inventory of $35,000. During the year, the company has four purchases.

Describe the process of leasing a commercial property : Describe the process of leasing a commercial property to another party. And, describe the lease provisions common to commercial real estate.

Discuss the concept of perpetual inventory system : Littleton Books has the following transactions during May.

State a few of job responsibilities that would be required : State a few of the job responsibilities that would be required to complete the job and any professional designations which may be useful.

Display economic data over the time period : The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft

Describe how you could use a behavioral contract : Describe how you could use a behavioral contract with a token economy program. Provide an example of combining these two behavior change procedures

How you believe target former ceo leader handled the crisis : Discuss how you believe Target's former CEO leader handled the crisis. Recommend a communications strategy for Target's new CEO, Brian Cornell

User Account

All Pages