Adjustments and Closing Process-Basic Entries

question 99

Essay

Adjustments and closing process-basic entries
Selected ledger accounts used by Speedy Truck Rentals Inc.,are listed along with identifying numbers.Following this list of account numbers and titles in a series of transactions,you are required to indicate the proper accounts to be debited and credited for each transaction.

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Definitions:

Periodic Inventory Method

An accounting method where inventory is physically counted and valued at specific intervals.

Voucher Payment

Voucher payment involves the use of a voucher system where approval documents are prepared and used as the basis for making payments to vendors.

Net Method

An accounting practice where discounts for early payment are assumed to be taken and purchase or sale transactions are recorded at the net, discounted amount.

Periodic Inventory Method

An accounting method where the inventory is physically counted at specific intervals and the cost of goods sold is calculated afterwards.