90. For each of the following economic events prepare the necessary journal entries. If no entry is required, explain briefly. Assume a periodic inventory system.
A) Opening inventory is recounted and confirmed to be $8,500.
B) Inventory costing $14,000 is purchased on credit.
C) Inventory worth $2,000 is damaged in the warehouse and written off.
D) Inventory costing $16,000 is sold during the month for $22,000. $4,000 was received in cash and the balance is on account.
E) Paid the amount owing from this month's purchases of inventory.
F) A month end count reveals 1,000 units on hand. The cost of these units is $4,000 and the net realizable value is estimated to be $4,700
91. For each of the following economic events, prepare the necessary journal entries. If no entry is required, explain briefly. Assume a perpetual inventory system.
A) Opening inventory is recounted and confirmed to be $8,500.
B) Inventory costing $14,000 is purchased on credit.
C) Inventory worth $2,000 is damaged in the warehouse and written off.
D) Inventory costing $16,000 is sold during the month for $22,000. $4,000 was received in cash and the balance is on account.
E) Paid the amount owing from this month's purchases of inventory.
F) A month end count reveals 1,000 units on hand. The cost of these units is $4,000 and the net realizable value is estimated to be $4,700