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Duplicate the journal entries that would have prepared on the computer printout. Calculate the balance in the firm’s Inventory account.

05 / 03 / 2018 Assignment

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Perpetual inventory
system: journal entries
. At the beginning of
20X3, Beehler Company implemented a computerized perpetual inventory system.
The first transactions that occurred during 20X3 following.

·
Purchases on account: 500 units @$4 = $2,000

·
Sales on account: 300 of the above units =
$2,550

·
Returns on account: 75 of the above unsold
units

The company
president examined the computer-generated journal entries for these
transactions and was confused by the absence of a Purchases account.

a.
Duplicate the journal entries that would have prepared on the computer
printout.

b. Calculate the
balance in the firm’s Inventory account.

c. Briefly explain the absence of the Purchases account to
the company president.



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