he following information is available for the Johnson Corporation: Beginning inventory $ 29,000 Inventory purchases (on account) 159,000 Freight charges on purchases (paid in cash) 14,000 Inventory returned to suppliers (for credit) 16,000 Ending inventory 34,000 Sales (on account) 254,000 Cost of inventory sold 152,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.

The journal entry (which can comprise of a number of different item recordings, each of the items to be recorded will is either a credit or a debit. The overall figure in the debit side of the journal must be equal the overall figure in the credit side, or the journal entry will be considered unbalanced.) to the above question can be seen in the attached images below.

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sakhilemdletshesm30 sakhilemdletshesm30 · Answer 2 · 2020-04-07T04:35:23+02:00

Answer:

The difference between periodic and perpetual inventory systems is that to determine opening and closing inventory, the periodic inventory system needs an actual stock count while the perpetual inventory system requires record keeping being maintained and updated.

Explanation:

1. Perpetual

Opening stock No entry

Stock bought Dr Inventory 159 000 Cr Accounts payable 159 000

Freight charges Dr Inventory 14 000 Cr Bank 14 000

Inventory returned Dr Accounts payable 16 000 Cr Inventory 16 000

Sales Dr Accounts receivable 254 000 Cr Sales 254 000

Cost of sales Dr Cost of goods sold 152 000 Cr Inventory 152 000

Closing stock No entry

2. Periodic

Opening stock Dr Cost of goods sold 29 000 Cr Inventory 29 000

Purchases Dr Purchases 159 000 Cr Accounts payable 159 000

Freight Charges Dr Freight costs 14 000 Cr Bank 14 000

Sales Dr Accounts receivable 254 000 Cr Sales 254 000

Closing stock Dr Inventory 34 000 Cr Cost of goods sold 152 000

Cost of sales No entry