Differences Between Perpetual and Periodic Inventory Systems—Sales Transactions

Sale of Inventory—

$5,000 on account, terms

2/10, n/30; cost of goods

$4,00

PERPETUAL

d.account reciavble

c. sales revenue

d. cos† of good sold

c. merchindise inventory

d.account reciavble

c. sales revenue

perpetual two entry

d. cos† of good sold

c. merchindise inventory

Sales Returns and

Allowances—$100 of

inventory returned; cost

of goods $ 80

perpetual

Sales Returns and Allowances

Accounts Receivable 100

Merchandise Inventory

Cost of Goods Sol

periodic

Sales Returns and Allowances

Accounts Receivable

D. Sales Returns and Allowances - 100

C. Accounts Receivable 100

TWO ENTRY

Merchandise Inventory- 80

Cost of Goods Sold- 80

PERPETUAL

Payment Less Sales / Returns and Sales/ Discounts

PERPETUAL

D. Cash

D. Sales Discounts

C. 4,900 Accounts Receivable

Transportation Costs—

$40 payment of freight

out

PERPETUAL

D. DELIVERTY EXPENSE - 40

c. cash 40

Sale of Inventory—

$5,000 on account, terms

2/10, n/30; cost of goods

$4,000

PERIODIC

D. accounts receivable

c. sales revenue

Sales Returns and

Allowances—$100 of

inventory returned; cost

of goods $80

PERIODIC

D.sales returns and allowences

C. accounts recivabke

Payment Less Sales

Returns and Sales

Discounts

PERIODIC

D. Cash

D.MSales Discounts

C. Accounts Receivable

Transportation Costs—

$40 payment of freight

out

d. Delivery Expense - 40

c. cash - 40