PERIODIC METHOD

1-Mar Furniture & Fixture 500,000.00 Net Sales

Notes Payable 500,000.00 Sales
Sales discount
1-Mar Purchases 144,000.00 Sales returns & Allowances
Accounts Payable 144,000.00
Less: COS
Freight-in 1,500.00 Beginning Inventory
Accounts Payable 1,500.00 Purchases
Purchase discount
5-Mar Purchases 150,000.00 Purchase returns and allowance
Cash 150,000.00 Freight in
COGAS
Accounts Receivable 1,110.00 Ending Inventory
Cash 1,110.00
Gross Profit
6-Mar Accounts Payable 1,500.00 Less: Operating Expenses
Cash 1,500.00 Freight out
Depreciation Expense: F&F
7-Mar Office Supplies Inventory 80,000.00 Office Supplies Expense
Cash 80,000.00 Interest Expense
Net Income
8-Mar Accounts Receivable 180,000.00
Sales 180,000.00

Freight out 1,000.00

Cash 1,000.00

9-Mar Accounts Payable 14,000.00

Purchase returns & allowances 14,000.00

10-Mar Accounts Payable 65,000.00 ###

Purchase discount 3,250.00###
Cash 61,750.00

11-Mar Accounts Receivable 320,000.00

Sales 320,000.00

Accounts Receivable 12,000.00

Cash 12,000.00

12-Mar Accounts Payable 65,000.00

Cash 65,000.00

13-Mar Cash 1,110.00

Accounts Receivable 1,110.00
17-Mar Cash 105,840.00
Sales discount 2,160.00
Accounts Receivable 108,000.00

22-Mar Purchases 60,000.00

Accounts Payable 60,000.00

23-Mar Cash 72,000.00

Accounts Receivable 72,000.00

24-Mar Cash 256,000.00

Accounts Receivable 256,000.00

31-Mar Cash 12,000.00

Accounts Receivable 12,000.00

31-Mar Notes Payable 250,000.00

Cash 250,000.00

Interest Expense 4,166.67

Cash 4,166.67

Other Information:

1 Merchandise Inventory-End 140,000.00

Income & Expense Summary ###

2 Office Supplies Expense 16,000.00

Office Supplies Inventory' ###

3 Depreciation Expense: Furniture & Fixtures 4,083.33

Accum Depreciation: Furniture & Fixtures ###

Cost 500,000.00
RV (10,000.00)
DA 490,000.00
UL 10.00
Ann Dep 49,000.00
Monthly 4,083.33
 500,000.00
Sales discount 2,160.00
Sales returns & Allowances -
497,840.00

Beginning Inventory 160,000.00

Purchases 354,000.00
Purchase discount (3,250.00)
Purchase returns and allowances (14,000.00)
Freight in 1,500.00
498,250.00
Ending Inventory (140,000.00) 358,250.00

139,590.00
erating Expenses
Freight out 1,000.00
Depreciation Expense: F&F 4,083.33
Office Supplies Expense 16,000.00
Interest Expense 4,166.67 25,250.00
114,340.00
 PERPETUAL

1-Mar Furniture & Fixture 500,000.00

Notes Payable 500,000.00

1-Mar Merchandise Inventory 144,000.00

Accounts Payable 144,000.00

Merchandise Inventory 1,500.00

Accounts Payable 1,500.00

5-Mar Merchandise Inventory 150,000.00

Cash 150,000.00

Accounts Receivable 1,110.00

Cash 1,110.00

6-Mar Accounts Payable 1,500.00

Cash 1,500.00

7-Mar Office Supplies Inventory 80,000.00

Cash 80,000.00

8-Mar Accounts Receivable 180,000.00

Sales 180,000.00
SP
Cost of Sales 100,000.00 Cost
Merchandise Inventory 100,000.00 GP

Freight out 1,000.00

Cash 1,000.00

9-Mar Accounts Payable 14,000.00

Merchandise Inventory 14,000.00

10-Mar Accounts Payable 65,000.00 ###

Merchandise Inventory 3,250.00###
Cash 61,750.00

11-Mar Accounts Receivable 320,000.00

Sales 320,000.00

Cost of Sales 256,000.00 SP

Merchandise Inventory 256,000.00 Cost
GP
Accounts Receivable 12,000.00
Cash 12,000.00
12-Mar Accounts Payable 65,000.00
Cash 65,000.00

13-Mar Cash 1,110.00

Accounts Receivable 1,110.00

17-Mar Cash 105,840.00

Sales discount 2,160.00
Accounts Receivable 108,000.00

22-Mar Merchandise Inventory 60,000.00

Accounts Payable 60,000.00

23-Mar Cash 72,000.00

Accounts Receivable 72,000.00

24-Mar Cash 256,000.00

Accounts Receivable 256,000.00

31-Mar Cash 12,000.00

Accounts Receivable 12,000.00

31-Mar Notes Payable 250,000.00

Cash 250,000.00

Interest Expense 4,166.67

Cash 4,166.67

Other Information:
Inventory per Record
1 Inventory Short or Over 2,250.00 Inventory per Phys. Count
Merchandise Inventory 2,250.00###

Cost of Sales 2,250.00

Inventory Short or Over 2,250.00

2 Office Supplies Expense 16,000.00

Office Supplies Inventory' 16,000.00###

3 Depreciation Expense: Furniture & Fixtures 4,083.33

Accum Depreciation: Furniture & Fixtures 4,083.33###

Cost 500,000.00
RV (10,000.00)
DA 490,000.00
UL 10.00
Ann Dep 49,000.00
Monthly 4,083.33
180,000.00 180%
100,000.00 100%
80,000.00 80%

320,000.00 100%
256,000.00 80%
64,000.00 20%
 Net Sales
Sales
Sales discount
Sales returns & Allowances
nventory per Record 142,250.00
nventory per Phys. Count 140,000.00
2,250.00 Less: COS
Goss Income
Less: Operating Expenses
Freight out 1,000.00
Depreciation Expen 4,083.33
Office Supplies Exp 16,000.00
Interest Expense 4,166.67
Net Income
500,000.00
2,160.00

497,840.00

358,250.00
139,590.00

25,250.00
114,340.00
Sales 120,000.00 100,000.00 200,000.00 800,000.00
Based on Sales 10% 20% 10% 30%

SP 120,000.00 100% 100,000.00 100% 200,000.00 100% 800,000.00 100%

Cost 108,000.00 90% 80,000.00 80% 180,000.00 90% 560,000.00 70%
GP 12,000.00 10% 20,000.00 20% 20,000.00 10% 240,000.00 30%

Sales 120,000.00 100,000.00 200,000.00 800,000.00

Based on Cost 15% 25% 15% 20%

SP 120,000.00 115% 100,000.00 125% 200,000.00 115% 800,000.00 120%

Cost 104,347.83 100% 80,000.00 100% 173,913.04 100% 666,666.67 100%
GP 15,652.17 15% 20,000.00 25% 26,086.96 15% 133,333.33 20%
record PC

PC