Shankar Company uses a perpetual system to record inventory

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $38,000.

In addition to the cost of inventory, the company also pays $580 for freight charges associated with the purchase on the same day.

Record the purchase of inventory on February 2, including the freight charges. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.)

Solution

Date General Journal Debit Credit February 2 Inventory $38,000 Accounts Payable $38,000 February 2 Inventory $580 Cash $580