A company uses a periodic system to record inventory transactions. The company purchases inventory on account on February 9, 2021, for $52,000 and then sells this inventory on account on March 7, 2021, for $73,000. Record the transactions for the purchase and sale of the inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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Business

Liliana Contreras

24 August, 16:30

A company uses a periodic system to record inventory transactions. The company purchases inventory on account on February 9, 2021, for $52,000 and then sells this inventory on account on March 7, 2021, for $73,000. Record the transactions for the purchase and sale of the inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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Jesus Schmidt · Answer 1

The journal entries are shown below:

On February 9:

Inventory A/c Dr $52,000

To Accounts payable / sundry creditors A/c Dr $52,000

(Being purchase of inventory is recorded)

On March 7:

Accounts receivable A/c Dr $73,000

To Inventory A/c $73,000

(Being inventory is sold on credit)