Perpetual Inventory System: Basic Entries
Renato Company Uses a Perpetual

Perpetual inventory system: basic entries
Renato Company uses a perpetual inventory system. A partial chart of accounts is shown below, followed by a series of merchandising transactions. Indicate the accounts that should be debited and credited in recording each transaction. (Ignore sales taxes.) $$\begin{array} { | l | l | l | l | } \hline 1 & \text { Cash } & 50 & \text { Sales } \\\hline 2 & \text { Accounts Receivable } & 60 & \text { Cost of Goods Sold } \\\hline 5 & \text { Inventory } & \text { XX } & \text { All other expense accounts } \\\hline 30 & \text { Accounts Payable } & & \\\hline\end{array}$$ $$\begin{array} { | l | l | c | c | } \hline &{ \text { Tranfactions } } & \begin{array} { c } \text { Accounte(s) } \\\text { Debited }\end{array} & \begin{array} { c } \text { Account(s) } \\\text { Credited }\end{array} \\\hline & \text { Exarnple: Sold goods for cash } & 1,60 & 50,5 \\\hline \text { A } & \text { Purchared goods on accourt } & & \\\hline \text { B } & \text { Sold goods on accourt } & & \\\hline \text { C } & \text { Collected cash from the customer in transaction A } & & \\\hline \text { D } & \text { Collected cash from the customer in trarsaction B } & & \\\hline \text { E } & \begin{array} { l } \text { The physical irventory at year-end disclosed } \\\text { a nomal amount of irventory shrirkage }\end{array} & & \\\hline\end{array}$$