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Question
Journalize these transactions for Armour Inc. using both the periodic inventory system and the perpetual inventory system, presented in the side-by-side format of the following form.
Oct.7 Sold merchandise on credit to Rondo Distributors, terms n/30. The cost of the merchandise was $720.
8 Purchased merchandise, $10,000, terms FOB shipping point, 2/15, n/30, with prepaid freight charges of $525 added to the invoice.
| PERIODIC INVENTORY SYSTEM | PERPETUAL INVENTORY SYSTEM | ||||||
| Date | Description | Dr. | Cr. | | | Description | Dr. | Cr. |
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Answer
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