Perpetual Inventory System: Basic Entries Renato Company Uses a Perpetual

Perpetual inventory system: basic entries Renato Company uses a perpetual inventory system. A partial chart of accounts is shown below, followed by a series of merchandising transactions. Indicate the accounts that should be debited and credited in recording each transaction. (Ignore sales taxes.)
$$\begin{array} { | l | l | l | l | } \hline 1 & \text { Cash } & 50 & \text { Sales } \\\hline 2 & \text { Accounts Receivable } & 60 & \text { Cost of Goods Sold } \\\hline 5 & \text { Inventory } & \mathrm { XX } & \text { All other expense accounts } \\\hline 30 & \text { Accounts Payable } & & \\\hline\end{array}$$ $$\begin{array} { | l | l | c | c | } \hline & \text { Transactions } & \text { Account(s) } & \text { Account(s) } \\\hline & \text { Example: Sold merchandise for cash } & \text { Debited } & \text { Credited } \\\hline \text { A } & \text { Purchased merchandise on account } & 1,60 & 50,5 \\\hline \text { B } & \text { Sold merchandise on account } & & \\\hline \text { C } & \text { Paid the supplier for the merchandise in transaction a } & & \\\hline \text { D } & \text { Collected cash from the customer in transaction b } & & \\\hline \text { E } & \begin{array} { l } \text { The physical inventory at year-end disclosed a } \\\text { normal amount of inventory shrinkage }\end{array} & & \\\hline & & & \\\hline\end{array}$$

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