Random
Random Pt. II
Journal Entries
100

If we purchase $500 worth of merchandising inventory for $500 cash, what is the journal entry?

Dr. Merchandise Inventory $500

     Cr. Cash $500

200

With this system, accounting records are updated for each purchase and each sale of inventory

What is the perpetual system?

300
5/15,n/45. The 5/15 means:

The customer will get a 5 percent discount if they pay within 15 days. 

300

With this system, we update accounting records for purchases and sales of inventory only at the end of a period.

What is the periodic system?

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