Scribd
Upload
503 views6 pages

Net Method Sample Problem

The document describes transactions from the perspective of a buyer and seller using the perpetual inventory system. It shows purchases and sales of merchandise by the buyer on October 2nd, 10th, and 17th, and payments to suppliers on October 27th and 31st. From the seller's perspective, it shows the sales, cost of goods sold, cash receipts and discounts from those same dates. Key figures include purchases of $2,940, $490, and $5,292 by the buyer and corresponding sales by the seller, along with payment of those amounts and related discounts.

Uploaded by

Tine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
503 views6 pages

Net Method Sample Problem

The document describes transactions from the perspective of a buyer and seller using the perpetual inventory system. It shows purchases and sales of merchandise by the buyer on October 2nd, 10th, and 17th, and payments to suppliers on October 27th and 31st. From the seller's perspective, it shows the sales, cost of goods sold, cash receipts and discounts from those same dates. Key figures include purchases of $2,940, $490, and $5,292 by the buyer and corresponding sales by the seller, along with payment of those amounts and related discounts.

Uploaded by

Tine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

NET METHOD/PERPETUAL INVENTORY SYSTEM

BUYER'S PERSPECTIVE

October 2 Merchandise Inventory 2,940.00


Accounts Payable 2,940.00

10 Accounts Payable 490.00


Merchandise Inventory 490.00

17 Merchandise Inventory 5,292.00


Accounts Payable 5,292.00

27 Accounts Payable 5,292.00


Cash 5,292.00

31 Accounts Payable 2,450.00


* Purchase Discount Lost 50.00
Cash 2,500.00

*PDL is an other expense account


Assuming with Gross Profit Ratio of 30%
SELLER'S PERSPECTIVE

3,000.00 October 2 Accounts Receivable


Cash Discount 2% Sales
60.00
Net Amount 2,940.00 Cost of Goods Sold
Merchandise Inventory
500.00
Cash Discount 2% 10 Sales Returns and Allowances
10.00 Accounts Receivable
Net Amount 490.00

5,400.00 17 Accounts Receivable


Cash Discount 2% Sales
108.00
Net Amount 5,292.00 Cost of Goods Sold
Merchandise Inventory

27 Cash
Accounts Receivable

31 Cash
Gross 3,000.00 ** Sales Discount Forfeited/Interest Revenue
Returns (500.00) Accounts Receivable
2,500.00

** SDF is an other income account


2,940.00
2,940.00
*Assuming if Cost Ratio is 30%
2,100.00 Sales 3,000.00 100% Sales 3,000.00 100%
2,100.00 COGS 2,100.00 70% COGS 900.00 30%
GP 30% GP 70%
490.00
490.00

5,292.00
5,292.00 Sales 5,400.00 100%
COGS 3,780.00 70%
3,780.00 GP 30%
3,780.00

5,292.00
5,292.00

2,500.00
50.00
2,450.00

You might also like