Eighth Company: You are assigned to prepare the accounting treatments related to the continuous and periodic inventory

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Question:

Eighth Company: You are assigned to prepare the accounting treatments related to the continuous and periodic inventory system:

Here are the following operations in the books of Al-Rafidain Trade, Import and Export for the month of January 2019:

1- On January 1, merchandise was purchased from Manama Company for an amount of 30,000 with a cash discount (15/15, N 30).

2- On January 3, expenses for transferring the purchased goods were paid in the amount of 300 dinars in cash.

3- On January 4, it was found that half of the merchandise purchased from Manama was not in conformity with the specifications and was returned.

4- On January 5, the value of the remaining merchandise purchased from Manama Company was paid in cash.

5- On January 6, goods were sold to Riffa for 10,000 dinars, on condition (10/10/30).

6- On January 10, 100 dinars of expenses for transporting goods abroad were paid in cash.

7- On January 12, half of the goods sold to Riffa were returned.

8- On January 15, the amount of goods sold to Riffa was received in cash.

9- On January 20, goods were sold to Al-Muharraq Company for an amount of 25,000 dinars in cash, knowing that the cost of the goods was 15,000 dinars.