3 Assume Webster Company buys bicycle helmets at a unit cost

3. Assume Webster Company buys bicycle helmets at a unit cost of $30 and sells them at a unit price of $52. There was no inventory at the beginning of the period. Required Provide the joumal entries required below by entering the account code of the appropriate account and the amount for each debit and credit: Account Name Account Code Inventory Purchases Cost of goods sold Sales revenue Cash Transactions Debits Credits Code Amount Code Amount Purchased 100 units for cash assuming the perpetual inventory system is used Purchased 100 units for cash assuming the periodic inventory system is used. Sold 100 units for cash assuming the perpetual inventory system used Sold 100 units for cash assuming the periodic inventory system is used A. C. D.

Solution

Fill the table :

E

C

5200

3000

D

A

5200

3000

Transaction	debit	Crdit
		Code	Amount	Code	Amount
A	Purchase 100 units for cash assuming the perpetual inventory system is used	A	3000	E	3000
b	Purchase 100 units for cash assuming the periodic inventory system is used	B	3000	E	3000
c	Sold 100 units for cash assuming the perpetual inventory system is used	E C	5200 3000	D A	5200 3000
d	Sold 100 units for cash assuming the periodic inventory system is used	E	5200	D	5200