theorybion.blogg.se

Sales Discounts: A sales discount is recorded as shown below: Sales DiscountĪgain, the above two entries are combined in a period inventory system as shown below: Accounts Receivable Inventory Sale: Unlike perpetual inventory system, the periodic inventory system records the transaction of sale via a single journal entry: Accounts Receivable Purchase Return: Purchase returns are recorded as shown below Accounts Payable/Accounts Receivable Note: The above two journal entries are usually combined in a single entry which is shown below: Purchases

Purchase Discount: Under gross method, purchase discount is recorded using the following journal entry: Accounts Payable Inventory Purchase: The purchase of inventory is recorded by debiting purchases account and crediting accounts payable. Also assume that where discounts are provided or availed on sales/purchases, they are recorded using the gross method (to learn more about gross method, see discount on sales and discount on inventory purchases).įollowing are the typical journal entries under a periodic inventory system: Let us assume that all sales and purchases are on credit. Here, we will learn the typical journal entries under a periodic inventory system. We discussed this concept in the perpetual-periodic inventory comparison. Periodic inventory system updates inventory balance once in a period.