Record the following transactions using the perpetual and
periodic inventory system. (45 Points)
Then discuss the differences between the two systems. (5
Points)
Date
May 1,
2020
Transactions for the Turi Company
Transaction
The Turi Company purchased 1,000 widgets from
the Smith Company for $25 each. Purchase was
on credit, terms 3/10, n/30.
May 2,
2020
May 3,
2020
May 4,
2020
May 7,
2020
May 9,
2020
May 12,
2020
May 20,
2020
May 30,
2020
May 31,
2020
The Smith Company shipped the goods FOB
Shipping point, $100.
The Turi Company sold 10 widgets for $45 each.
The Jones Company purchased 25 widgets from
the Turi Company on credit, $45 each. Will pay in
30 days.
The Turi Company sent back 75 widgets to the
Smith Company due to low sales.
On May 9th we paid the Smith Company for
goods purchased.
The Jones Company purchased 25 additional
widgets at $45 each, on credit but wanted them
delivered. FOB Destination, $75 (Cash).
The Jones Company returned 10 widgets. They
didn't need them..
The Jones Company paid there account off.
The Turi Company purchased 250 widgets from
the Smith Company for $35 each. Purchase was
on credit, terms 3/10, n/30.
