Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31, 2020....

 

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Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31, 2020. Jan 14 Purchased $30,000 of inventory on credit. Feb 19 Sold merchandise for cash $14,000. Original cost was $9,500. Aug 4 Sold merchandise for cash $22,000. Original cost was $14,500. Sep 20 Purchased $10,000 of inventory for cash. Required: 1. Prepare all the journal entries assuming Stitch Ships Inc. uses the perpetual inventory system. 2. What is the dollar value of Stitch Ships Inc. ending inventory if its beginning inventory was $7500. Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31, 2020. Jan 14 Purchased $30,000 of inventory on credit. Feb 19 Sold merchandise for cash $14,000. Original cost was $9,500. Aug 4 Sold merchandise for cash $22,000. Original cost was $14,500. Sep 20 Purchased $10,000 of inventory for cash. Required: 1. Prepare all the journal entries assuming Stitch Ships Inc. uses the perpetual inventory system. 2. What is the dollar value of Stitch Ships Inc. ending inventory if its beginning inventory was $7500.

Answer rating: 100% (QA)

1 Journal Entries Using the Perpetual Inventory System January 14 To record the purchase of inventor... View the full answer