Answer to Question #259958 in Accounting for Nile

Question

June 10,2013 purchased 300 units at cost of 20 on cash. On August 20, 2013 returned 10 units from june 10 purchase.Inventory left on hand is 340. 50 units are from March 7, purchases.Record transaction on periodic perpetual system.

Answer 1

10.06.2016: Debit materials credit settlements with suppliers - 6000 (300units*$20)

20.08.2013: Debit settlements with suppliers credit materials - 200 (10 units*$20)

50+300-10=340 remaining quantity

340*20=6800 (debit balance)