What is the main distinction between perpetual and periodic inventory systems? Which type of system provides better internal control over inventory? Explain why.
Answer to relevant QuestionsWhy is a physical count of inventory necessary in a periodic inventory system? Why is it still necessary in a perpetual inventory system? In its annual report, American Eagle Outfitters states that its “e-commerce operation records revenue upon the estimated customer receipt date of the merchandise.” Is this FOB shipping point or FOB destination? If ...If net sales are $ 300,000, cost of goods available for sale is $ 280,000, and gross profit percentage is 35%, what is the amount of ending inventory? Using the information in M6-8, prepare the journal entries needed at the time of sale and collection, assuming the company uses a perpetual inventory system. Info M6-8 Merchandise costing $ 2,000 is sold for $ 3,000 on terms ...Using the information in E6-16, prepare journal entries to record the transactions, assuming Bear’s Retail Store uses a perpetual inventory system. Info E6-16 Nov. 20 Sold two items of merchandise to Cheryl Jahn, who paid ...
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