Inventory Journal Entries under Perpetual Inventory Systems

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Reference no: EM132478426

Question - Inventory Journal Entries under Perpetual and Periodic Inventory Systems

The following transactions occurred in January 2019 for Atlantic Corp:

Jan 3 Purchased inventory on account from Cooley Wholesalers, $6,500, Terms 2/15, n/30.

Jan 3 Paid shipping bill of $100 related to the Jan 3 purchase.

Jan 6 Returned $1,500 of the inventory purchased from Cooley Wholesalers on Jan 3.

Jan 8 Sold inventory to Herrick Co, $8,000, on account terms 2/10, n/30. The cost of this inventory was $3,700.

Jan 9 Purchased inventory on account from Tyson Inc, $3,600, terms 3/10, n/EOM.

Jan 10 Paid Cooley Wholesalers.

Jan 12 Received payment from Herrick Co.

Jan 13 After a negotiation regarding slightly damaged goods, received a $500 allowance from Tyson Inc.

Jan 15 Sold inventory to Jasper Inc, $2,700, on account, terms 2/10, n/30. The cost of this inventory was $1,500.

Jan 15 Paid shipping bill of $50 related to the Jan 15 sale and delivery to the customer.

Jan 22 Paid Tyson Inc.

Jan 23 Jasper Inc returned $300 of the inventory sold on Jan 15. The cost of this inventory was $120. The inventory was placed back into sellable inventory.

Jan 28 Received payment from Jasper Inc.

Requirements -

1) Record the journal entries for the above transactions assuming that Atlantic Corp uses a perpetual inventory system.

2) Record the journal entries for the above transactions assuming that Atlantic Corp uses a periodic inventory system.

Reference no: EM132478426

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