Student’s Last Name 1

Problem I
Perpetual Inventory System

Date Accounts Debit Credit

July 6 Inventory 1500
Accounts Payable 1500

July 8 Accounts Payable 400

Inventory 400

July 9 Inventory 90
Cash 90

July 19 Accounts Receivable 3500

Sales 3500

Cost of Goods Sold 700

Inventory 700

July 20 Sales Return 300

Accounts Receivable 300

Inventory 90
Cost of Goods Sold 90

July 21 Cash 3136

Sales Discount 64
Accounts Receivable 3200

Accounts Payable 1100

Cash 1067
Inventory 33

Problem II
Periodic Inventory System

Date Accounts Debit Credit

July 6 Purchases 1500
Accounts Payable 1500

July 8 Accounts Payable 400

Purchase Returns and Allowances 400
 Student’s Last Name 2

July 9 Freight-in 90
Cash 90

July 19 Accounts Receivable 3500

Sales 3500

July 20 Sales Return 300

Accounts Receivable 300

July 21 Cash 3136

Sales Discount 64 3200
Accounts Receivable

Accounts Payable 1100

Cash 1067
Purchase Discount 33

Problem III

Using FIFO

Total Cost of Goods Sold

May 10 Sales 400 units

From May 1 Purchases 380 units @ $15 $5,700
From May 5 Purchases 20 units @ $17 $340
May 25 Sales 400 units
From May 5 Purchases 250 units @ $17 $4,250
From May 20 Purchases 150 units @ $22 $3,300
Total Cost of Goods Sold $13,590

Cost of Ending Inventory

From May 20 Purchases

Remaining 150 units @ $22 = $3300