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Journal Entry - Perpetual Inventory System

Total questions: 6

Worksheet time: 6mins

Name
Class
Date
1.

In Perpetual Inventory System, how will you record

Purchases: Purchase Inventory for P5,000.00 on account. What will be your debit account and amount?

a)

Accounts Payable for P5,000

b)

Accounts Receivable for P5,000

c)

Sales for P5,000

d)

Inventory for P5,000

2.

In Perpetual Inventory System, how will you record

Sales: Record a cash sale of P3,000.00, originally purchased for P1,500.00 from your supplier. What will be the effect on your sales?

a)

Credit Cash for P3,000

b)

Credit Sales for P3,000

c)

Debit Accounts Receivable for P3,000

d)

Debit Inventory for P3,000

3.

In Perpetual Inventory System, how will you record

Sales Returns: Customer A returns inventory worth P2,500.00 previously paid for cash, you originally purchased it from Supplier B for P2,000. What will be the effect on your inventory account?

a)

Debit Inventory for P2,500

b)

Debit Inventory for P2,000

c)

Credit Inventory for P2,500

d)

Credit Inventory for P2,000

4.

In Perpetual Inventory System, how will you record

Cost of Goods Sold: You sold inventory for P1,800.00 which cost you P1,200.00. What will be the effect on your Cost of Goods Sold account?

a)

Debit Cost of Goods Sold for P1,200

b)

Credit Cost of Goods Sold for P1,200

c)

Debit Inventory for P1,200

d)

Credit Inventory for P1,200

5.

In Perpetual Inventory System, how will you record

Purchase with Trade Discount: Supplier sold Inventory at a 5% trade discount on a P500.00 cash payment. What will be your credit entry?

a)

Cash for P500

b)

Cash for P475

c)

Purchases Discounts for P25

d)

Inventory for P500

6.

In Perpetual Inventory System, how will you record

Purchase with Cash Discount: Supplier sold Inventory for P3,000.00 on account, w/ terms 2/10, n/30. What will be the effect when you pay the supplier beyond the discount period.

a)

No Entry

b)

Debit Inventory for P3,000.00

c)

Credit Purchases Discounts for P60.00

d)

Debit Accounts Payable for P3,000.00