Indicate Whether the Inventory Account Is Debited (Dr),credited (Cr),or Neither

question 69

Essay

Indicate whether the inventory account is debited (Dr),credited (Cr),or neither (N)when using a perpetual inventory system to record each of the following transactions:
_____ The company purchases $3,000 of goods intending to sell them to customers.
_____ The company returns $200 of damaged goods to the supplier.
_____ The company pays a shipping firm $685 to ship an order of goods from the supplier to the company.
_____ The company receives a purchase discount for prompt payment to a supplier.
_____ Customers return $550 of goods in excellent condition to the company.
_____ The company sells $4,600 of goods to consumers.
_____ The company purchases $1,600 of supplies intending to use them internally.
_____ The company gives a sales discount for prompt payment to customers.
_____ The company does a physical count and finds three items missing due to shrinkage.

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Definitions:

Common Costs

Expenses incurred in the production of multiple products or delivery of multiple services that cannot be directly attributed to any individual product or service.

More Than One Activity

A reference to operations or processes that involve multiple tasks or actions, often requiring a broad set of skills or resources.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Sales Price Variance

The difference between the actual selling price and the expected selling price of a product, multiplied by the number of units sold.