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

تمرين 4

Comparison of Inventory Systems
Sky Probe sells state-of-the-art telescopes to individuals and organizations interested in studying the solar system.t December 31 last year, the company's inventory amounted to $250,000.ur­ing the first week of January this year, the company made only one purchase and one sale.hese- transactions were as follows:
Jan. Sold one telescope costing $90,000 to Central State University for fash, $ 117,000.
Jan. Purchased merchandise on account from Lunar Optics, $50,000.erms, net 30 days.
a.repare journal entries to record these transactions assuming that Sky Probe uses the perpetual inventory system.se separate entries to record the sales revenue and the cost of goods sold for the sale on January 2.
b.ompute the balance of the Inventory account on January 7.
c.repare journal entries to record the two transactions, assuming that Sky Probe uses the peri­odic inventory system.
d.ompute the cost of goods sold for the first week of January assuming use of a periodic inven­tory system.se your answer to part b as the ending inventory.
e.hich inventory system do you believe that a company such as Sky Probe would probably use Explain your reasoning.