Sigfusson Supplies reported beginning inventory of 115 units, for a total cost o

Question

Sigfusson Supplies reported beginning inventory of 115 units, for a total cost of $4,025. The company had the following transactions during the month:

Prepare the journal entries that would be recorded using periodic inventory system based on the above information.

Prepare the journal entries that would be recorded using a perpetual inventory system, including any “book-to-physical” adjustment that might be needed.

Jan O6 Record the sales revenue on account

Jan 06 Record the Cost of Goods sold

Jan 09 Record the Purchase of inventory on account

Jan 11 Record the sales revenue on account

Jan 11 Record the cost of goods sold

Jan 19 Record the sales on account

Jan 19 Record the cost of goods sold

Jan 27 Record the purchase of inventory on account

Jan 31 Record the book to physical adjustment

What is the dollar amount of shrinkage that you were able to determine in periodic inventory system?

b. $1225

Sigfusson Supplies reported beginning inventory of 115 units, for a total cost of $4,025. The company had the following transactions during the month:

Explanation / Answer

Req 1 Journal entry under periodic Inventory Date Accounts title and explanations Debit $ Credit $ 6-Jan Accounts receivable Dr. 2025    Sales revenue 2025 9-Jan Purchases Dr. 1225     Accounts payable 1225 11-Jan Accounts receivable Dr. 1750    Sales revenue 1750 19-Jan Accounts receivable Dr. 2475    Sales revenue 2475 27-Jan Purchases Dr. 1225     Accounts payable 1225 31-Jan Inventory Account Dr. 2450    Purchases 2450 31-Jan Cost of Goods sold Dr. 5600    Inventory 5600 Note: Cost of goods sold: Beginning inventory 4025 Add: Purchases 2450 Less: Ending (25 units @35) 875 Cost of goods sold 5600 Req 2: Journal entries under Perpetual Inventory Date Accounts title and explanations Debit $ Credit $ 6-Jan Accounts receivable Dr. 2025    Sales revenue 2025 6-Jan Cost of goods sold 1575    Inventory 1575 9-Jan Inventory Dr. 1225     Accounts payable 1225 11-Jan Accounts receivable Dr. 1750    Sales revenue 1750 11-Jan Cost of goods sold Dr. 1225     Inventory 1225 19-Jan Accounts receivable Dr. 2475    Sales revenue 2475 19-Jan Cost of goods sold Dr. 1575    Inventory 1575 27-Jan Invevntory Dr. 1225     Accounts payable 1225 31-Jan Cost of goods sold Dr. 1225     Inventory 1225 (for inventory Shrinkage) Note: Number of units of shrinkage: Units to be in hands 60 Less: Units actually in hand 25 Units shrinkage 35 Cost per unit 35 Inventory Shrinkage 1225 Req 3-a: Under Periodic Inventory, Inventory Shrinkage Answer is a. One cannot determine Req3-b: Under Perpetual, Inventory Shrinkage Answer is B. $ 1225

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