Record the transactions and events in the general journal

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Question - Huawei Traders Inventory recording methods Huawei Traders April is a leading supplier of information and communications technology.

1 Ren Zhengfei contributed cashof $800,000 and inventory of $2,520,000 to commence the operations of Huawei Traders

2 Huawei Traders purchased inventory from TalkTalk Ltd for $672,000

5 Huawei Traders returned goods that had cost $42,000 to TalkTalk Ltd

15 Huawei Traders paid the amount owing to TalkTalk Ltd less 10% settlement discount.

17 Cash sales of $200,000 to T-Mobile (cost price 153,200) were made by Huawei Traders.

21 Goods were returned to Huawei Tradersby T-Mobile for a cash refund of $16,000 (cost price $12,300).

22 Sold goods on credit to PTCL for $320,000 (cost price $193,200).

29 Huawei Tradersreceived full settlement from PTCL less 5% discount

30 A physical stocktake revealed inventory on hand of $2,772,000.

Required -

a) Record the above transactions and events in the general journal of Huawei Traders. Use the periodic inventory method of recording inventory.

b) Show the 'inventory' and 'cost of goods sold' ledger accounts for the perpetual method. The balance is not required for the cost of goods sold account.

c) Outline two advantages and two disadvantages of the perpetual and periodic methods of recording inventory.

Reference no: EM132878662

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