Question

For each merchandising transaction below, for Alpha Betts Co. (ABC), determine what recording would be necessary first assuming (i) a periodic inventory system and then assuming (ii) a perpetual inventory system. (Assume the gross method for any purchase discounts or sales discounts.) (a) On March 6th, ABC purchased $380 of goods from Gamma Vending on account, with terms of 1/15, n60. (b) On March 7th, ABC sold merchandise for $200 to Customer A on account. (ABC offers the same terms to all customers for sales on account: 2/10, n30.) (Where necessary, assume the cost of these goods is $130.) (c) On March 9th, ABC purchased $1,000 of goods from Iota Sourcing on account, with terms of 2/5, n45. (d) On March 10th, ABC returned goods costing $80 to Gamma Vending because they damaged beyond repair. (e) On March 11th, ABC purchased $700 of goods from Psi Supply on account, with terms n30. (f) On March 15th, ABC received payment from Customer A. (g) On March 17th, ABC paid the balance due to Gamma Vending. (h) On March 19th, ABC sold merchandise for $400 to Customer B on account. (Where necessary, assume the cost of these goods is $225.) (i) On March 20th, ABC paid the balances due to both Iota Sourcing and Psi Supply. (j) On March 22nd, Customer B returned $60 of goods (with an assumed cost to ABC of $40) that were not to specification. (k) On March 31st, ABC received payment from Customer B?

Answer 1