Because many companies use computerized accounting systems, periodic inventory is widely used.

On April 3, Villa Corp. accepted a return of merchandise. What is the effect on the accounting equation of the following entries for this return?  Apr. 3  Customer Refunds Payable 1,200            Cash    1,200                 3 Inventory 720            Estimated Returns Inventory   720 ​

The following entry was journalized in the books of Brighty Company: Jan. 12 Inventory 8,000           Accounts Payable—HST, Inc.   8,000    Purchased inventory on account.     What is the impact of this entry on the accounting equation? ​

Under the periodic inventory system, the cost of goods sold is recorded when sales are made.

If the perpetual inventory system is used, an account entitled Cost of Goods Sold is included in the general ledger.

Using the following data taken from Hsu’s Imports Inc., which uses a periodic inventory system, prepare the “Cost of goods sold” section of the income statement for the year ended March 31. ​ Inventory, April 1 $   193,250 Inventory, March 31 180,100 Purchases 1,079,600 Purchases returns and allowances 51,200 Purchases discounts 18,500 Sales 1,860,000 Freight in 19,250

Which of the following costs would be included in inventory? (a) Purchase price (b) Insurance in transit FOB shipping point (c) Freight for delivery FOB shipping point (d) Repair due to negligence of receiving clerk (e) Receiving department employee salary (f) Cost of processing purchase orders

Which of the following groupings of accounts includes only accounts that carry a normal credit balance?

A sale of $750 on account subject to a sales tax of 6% would be recorded as an account receivable of $750.

In recording the cost of goods sold for cash, based on data available from perpetual inventory records, the journal entry would