Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 18

CPI sells computer peripherals.t December 31, 2015, CPI's inventory amounted to $500,000.uring the first week in January 2016, the company made only one purchase and one sale.hese transactions were as follows:

CPI has a full-time accountant and a computer-based accounting system.t records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable.
Instructions
a.riefly describe the operating cycle of a merchandising company.dentify the assets and liabilities directly affected by this cycle.
b.repare journal entries to record these transactions, assuming that CPI uses a perpetual inventory system.
c.ompute the balance in the Inventory account at the close of business on January 6.
d.repare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system.
e.ompute the cost of goods sold for the first week of January assuming use of the periodic system.Use your answer to part c as the ending inventory.)
f.hich type of inventory system do you think CPI most likely would use Explain your reasoning.
g.ompute the gross profit margin on the January 6 sales transaction.