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Perpetual Inventory System: Transactions and Closing Entries Danny's Wholesale Company

Question 34

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Perpetual inventory system: transactions and closing entries Danny's Wholesale 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.)
1 Cash 50 Sales 2 Accounts Receivable 60 Cost of Goods Sold 5 Inventory 99 Income Summary 30 Accounts Payable 40 Retained Earnings \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 } & 99 & \text { Income Summary } \\\hline 30 & \text { Accounts Payable } & & \\\hline 40 & \text { Retained Earnings } & & \\\hline\end{array} Perpetual inventory system: transactions and closing entries Danny's Wholesale 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 } & 99 & \text { Income Summary } \\ \hline 30 & \text { Accounts Payable } & & \\ \hline 40 & \text { Retained Earnings } & & \\ \hline \end{array}

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