A Company Uses a Perpetual System to Record Inventory Transactions

question 1

Essay

A company uses a perpetual system to record inventory transactions.The company purchases inventory on account on February 9,2012,for $50,000 and then sells this inventory on account on March 7,2012,for $70,000.Record the transactions for the purchase and sale of the inventory.

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Definitions:

Combined ROI

A measure of the total return on investment from multiple investments or projects, combined into one metric.

Investment Opportunity

An item or asset obtained with the intention of producing income or increasing in value.

Residual Income

The amount of income that an individual or company has after all personal debts and expenses, including the cost of capital, have been paid.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.