test 2

Question 1

the purchase of inventory is recorded as ____ and will always _____ the inventory account with the _____ as the ____.

Answer 1

a cost, increase, same#, original cost.

Question 2

perpetual inventory system?

Answer 2

Perpetual uses technology, such as bar codes and radio frequencies, to track and count the inventory coming and going from your manufacture and the your company’s inventory receipts and sales.

Question 3

periodic inventory system?

Answer 3

periodic is the physical counting of the inventory when it is received and periodically counted throughout a business cycle.

Question 4

what is the difference between the perpetual and periodic inventory system?

Answer 4

perpetual uses technology and periodic is a physical counting of inventory.

Question 5

what are the two most common accounting methods for tracking inventory and cost of goods sold?

Answer 5

the perpetual and periodic inventory system

Question 6

the sale of merchandise must be ___________

Answer 6

Journalized

Question 7

what are the 2 journal entries needed to Journalize the sale of merchandise

Answer 7

1. ) the sales transaction

2. ) Cost of inventory sold

Question 8

what are the usual accounts used when making a sales transaction

Answer 8

cash and sales

Question 9

what are the usual accounts used when making cost of goods sold

Answer 9

inventory and cost of goods sold