1. For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both.

a. Normally used for relatively inexpensive goods.

b. Keeps a running computerized record of merchandise inventory.

c. Achieves better control over merchandise inventory.

d. Requires a physical count of inventory to determine the quantities on hand.

e. Uses bar codes to keep up-to-the-minute records of inventory

1. Journalizing purchase transactions

Consider the following transactions for Snap Toys:

May 8 Snap Toys purchased $185,800 worth of MegoBlock toys on account with

credit terms of 2/10, n/30.

12 Snap Toys returned $18,500 of the merchandise to MegoBlock due to

damage during shipment.

15 Snap Toys paid the amount due, less the return and discount.

Entry: credit inventory

14. Journalizing purchase transactionsperiodic inventory system

Consider the following transactions for Dependable Packing Supplies:

Apr. 10 Dependable Packing Supplies buys $156,000 worth of merchandise inventory

on account with credit terms of 3/10, n/30 from The Hauling Company.

12 Dependable Packing Supplies returns $11,000 of the merchandise to The

Hauling Company due to damage during shipment.

19 Dependable Packing Supplies paid the amount due, less the return and

discount to The Hauling Company.

Requirements

1. Journalize the purchase transactions assuming Dependable Packing Supplies uses

the periodic inventory system. Explanations are not required.

2. What is the net cost of inventory purchased?