Inventory Flashcards
1
Q
Describe Periodic Inventory System and give Journal Entries
A
When a Physical Inventory at YE determines the inventory balance (weighted avg)
During the year:
Dr Purchases / Cr A/P
At YE:
Dr Ending Inventory
Dr COGS (“plug”)
Cr Purchases
2
Q
Describe Perpetual Inventory System and give Journal Entries
A
Real-time Count of Inventory (moving avg)
advantage: ability to determine inventory on hand at any time, assists with identifying error & theft, mgmt/inv recs
Purchases: Dr Inventory / Cr A/P
Sales:
Dr A/R / Cr Sales Rev
Dr COGS / Inventory
