Question

Prepare a tabular summary to record the transactions for the month using a perpetual inventor system.

(a) On March 2, Blossom Company sold $850,000 of merchandise to Sunland Company on account. The cost of the merchandise sold was $500,000.
(b) On March 6, Sunland Company returned $100,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $60,000.
(c) On March 12, Blossom Company received the balance due from Sunland Company.
(Enter negative amounts using elther a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

Perpetual Inventor System.

DR CR

$ $

March 2

(a) Accounts receivable $850,000

Revenue $850,000

Cost of goods sold $500,000

Inventory $500,000

March 6

(b) Inventory $60,000

Cost of goods sold $60,000

Revenue $100,000

Accounts receivable $100,000

March 12

(c) Bank/Cash $850,000

Accounts receivable $850,000

Step-by-step explanation:

perpetual inventory system is an inventory system where inventory records are updated to reflect additions and subtractions inventory. Records will be made when inventories are received, goods are sold items returned, etc.