Shane company uses the perpetual inventory system


 

Shane company experienced the folowing transactions during the month of November 2010

3) purchased $90,200 in merchandise from Morris Manufactoring company; terms 2/10, n/30, FOB shipping point.

11) Paid $350 freight charges to Intercontenental Transit for merchandise purchased from Morris Manufactoring company on November 3rd.

15) bought inventory items totaling $65,400 from Tuller,Inc.; terms 2/10, n/30, FOB destination.

20) Returned $8,000 (gross price) of merchandise to Tuller,Inc.

25) Sent amount due to Tuller,Inc.

28) Paid Morris Manufactoring Company amount due for inventory items purchased on November 3rd

Question A) Make the journal entries to record the events assuming Shane company uses the perpetual inventory system and the net price method for recording inventory.

B) Make the journal entries to record the events assuming Shane company uses the perpetual inventory system and the gross price method for recording inventory.

 

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Accounting Basics: Shane company uses the perpetual inventory system
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