Perpetual Inventory System Journal Entries

Problem # 1: Dino’s After School purchased 50 textbooks from the local publisher, about career readiness, to resell to clients. The total cost of the transaction, including shipping and handling, was $552. The textbooks were purchased on account. Use a journal entry to record this transaction, using the perpetual inventory system.

Problem # 2: Dino’s After School returned 8 severely damaged books to the publisher. The total value of the returned merchandise was $94. Use a journal entry to record this transaction, using the perpetual inventory system.

Problem # 3: Examine the invoice below. If Dino’s After School paid the invoice of 5/30/17 on 6/6/17, record the journal entry that would be made for the payment of the invoice. Explain in 100-150 words the effect of discounts on merchandise inventory.