Perpetual and Periodic SystemsRecording InventoryRelated Entries using the Net Method
The following transactions all relate to Sharper Inc.s purchase of merchandise inventory on December
Purchased inventory on December with a list price of $ a trade discount of and with terms n
Returned $ of inventory to the supplier on December
Reduced accounts payable by $ due to a $ cash payment to the supplier on December ; this payment was within the cash discount period.
Paid the remaining balance to the supplier on January of the following year.
Perpetual inventory systems
Periodic inventory systems
a Prepare journal entries for the transactions through assuming that the company uses the perpetual inventory system and the net method to record purchases. Include any adjusting entry required
b Prepare journal entries for the transactions through assuming that the company uses the periodic inventory system and the net method to record purchases. Include any adjusting entry required on December
