Bingerton Industries began the year with inventory of $85,000. Purchases of inventory on account during the...

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Bingerton Industries began the year with inventory of $85,000. Purchases of inventory on account during the year totaled $310,000. Inventory costing $335,000 was sold on account for $520,000. Required: Determine the financial statement effects of the purchase of inventory on account and the sale of inventory on account using a perpetual system. Complete this question by entering your answers in the tabs below. Purchase Sale Determine the financial statement effects of the sale of inventory on account using a perpetual system. Note: Amounts to be deducted should be indicated with a minus sign. Assets Accounts Receivable Sales Revenue $ X $ 520,000 520,000 > Balance Sheet Liabilities Stockholders' Equity Common Stock < Purchase Retained Earnings Revenues Cost of Goods Sold Sale > x $ Income Statement 335,000 Inventory Expenses X fects of the sale of inventory on account using a perpetual system. d be indicated with a minus sign. 00 00 Balance Sheet Liabilities Stockholders' Equity Common Stock < Purchase Retained Earnings Sale Revenues Cost of Goods Sold > Income Statement $335,000 X Inventory Expenses $335,000 Net Income X Bingerton Industries began the year with inventory of $85,000. Purchases of inventory on account during the year totaled $310,000. Inventory costing $335,000 was sold on account for $520,000. Required: Determine the financial statement effects of the purchase of inventory on account and the sale of inventory on account using a perpetual system. Complete this question by entering your answers in the tabs below. Purchase Sale Determine the financial statement effects of the sale of inventory on account using a perpetual system. Note: Amounts to be deducted should be indicated with a minus sign. Assets Accounts Receivable Sales Revenue $ X $ 520,000 520,000 > Balance Sheet Liabilities Stockholders' Equity Common Stock < Purchase Retained Earnings Revenues Cost of Goods Sold Sale > x $ Income Statement 335,000 Inventory Expenses X fects of the sale of inventory on account using a perpetual system. d be indicated with a minus sign. 00 00 Balance Sheet Liabilities Stockholders' Equity Common Stock < Purchase Retained Earnings Sale Revenues Cost of Goods Sold > Income Statement $335,000 X Inventory Expenses $335,000 Net Income X

Answer rating: 100% (QA)

Purchase Debit Inventory 310000 Credit Accounts Payable 310000 S... View the full answer