Question

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.)

Answer 1

Answer:

Explanation:

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)