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.)
$$\begin{array} { | l | l | l | l | }
\hline 1 & \text { Cash } & 50 & \text { Sales } \
\hline 2 & \text { Accounts Receivable } & 60 & \text { Cost of Goods Sold } \
\hline 5 & \text { Inventory } & 99 & \text { Income Summary } \
\hline 30 & \text { Accounts Payable } & & \
\hline 40 & \text { Retained Earnings } & & \
\hline
\end{array}$$

Question

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.)
 $$\begin{array} { | l | l | l | l | } 
\hline 1 & \text { Cash } & 50 & \text { Sales } \
\hline 2 & \text { Accounts Receivable } & 60 & \text { Cost of Goods Sold } \
\hline 5 & \text { Inventory } & 99 & \text { Income Summary } \
\hline 30 & \text { Accounts Payable } & & \
\hline 40 & \text { Retained Earnings } & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of 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.)
 $$\begin{array} { | l | l | l | l | } 
\hline 1 & \text { Cash } & 50 & \text { Sales } \
\hline 2 & \text { Accounts Receivable } & 60 & \text { Cost of Goods Sold } \
\hline 5 & \text { Inventory } & 99 & \text { Income Summary } \
\hline 30 & \text { Accounts Payable } & & \
\hline 40 & \text { Retained Earnings } & & \
\hline
\end{array}$$

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