GMS 200 Chapter Notes - Chapter 5: Perpetual Inventory, Accounts Payable, Financial Statement

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Louis Pike

Document Summary

Using your textbook determine the definition, category, and the financial statement on which the following accounts appear: Sales and cost of goods sold recorded at point of sale. To check accuracy of perpetual records and to determine shrinkage (due to theft, damage, human error, etc) Cost of goods sold recorded at the end of the period. To calculate inventory on hand and use this information to determine what the cost of goods sold number is. This method is very similar to supplies learned in chapter 4 (count supplies at end of year and expense the difference). We will be using the perpetual inventory system only. Pw audio supply, inc. , has an opening inventory balance of ,200. On august 4th pw audio supply, inc. , purchases ,500 of inventory for cash. On august 8th pw audio supply, inc. , purchases an addition ,300 of inventory on account, terms 2/10, n/30. On august 9th the appropriate party paid freight.