Final answer:
The question inquires about creating journal entries for purchase transactions in a perpetual inventory system for Business subject, college grade level. In such a system, inventory purchases are recorded by debiting Inventory and crediting Cash or Accounts Payable, depending on payment method.
Step-by-step explanation:
The subject of this question is Business, specifically focusing on accounting transactions within a perpetual inventory system. In a perpetual inventory system, inventory records are updated continuously as transactions occur. For a company that purchases inventory, the journal entries to record these transactions typically involve debiting the Inventory account and crediting Cash or Accounts Payable, depending on whether the purchase is paid for upfront or on credit terms.
Example of Journalizing a Purchase Transaction
- When inventory is purchased for cash: Debit Inventory and Credit Cash.
- When inventory is purchased on credit: Debit Inventory and Credit Accounts Payable.
To journalize a transaction, you would enter the debit and credit amounts in the appropriate accounts within the company's general ledger. Without specific transaction details, we cannot provide exact journal entries, but this is the general process that would be followed for each purchase transaction in a perpetual inventory system.