Roller Blade Company Uses the Perpetual Inventory System and Had

question 198

Essay

Roller Blade Company uses the perpetual inventory system and had the following transactions during October:
$\begin{array}{|l|l|}\hline \text { October 6: } & \begin{array}{l}\text { Purchased } \$ 4,000 \text { of inventory. The seller's credit terms are } 2 / 10, \\\mathrm{n} / 30 .\end{array} \\\hline \text { October } 8: & \text { Returned } \$ 200 \text { worth of defective units and received full credit. } \\\hline \text { October } 15: & \text { Paid the amount due, less the returned items. }\\\hline\end{array}$
Prepare journal entries to record each of the preceding transactions.

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Definitions:

Productivity of Labor

A measure of economic performance that calculates the output of goods and services per unit of labor input.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of innovations and inventions.

Real Wages

Wages adjusted for inflation, representing the true purchasing power of income.

Capital Equipment

Capital equipment consists of tangible assets such as buildings, machinery, and tools that are used in the production process to generate goods and services.