Periodic processing system for accounting for inventory

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Reference no: EM13885158

Prepare the journal entries for the following transactions (1) assuming the company uses the perpetual processing system and (2) assuming the company uses the periodic processing system for accounting for inventory.

a. Purchased merchandise for cash, $500.

b. Sold merchandise for $600 cash. The merchandise had a cost of $480.

c. Assuming Beginning Inventory was $250 and Ending Inventory was $270, prepare the entry needed to adjust Inventory to the ending balance under the periodic processing system.

Reference no: EM13885158

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