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  3. the big pen store supplies pens to the public. the

The big pen store supplies pens to the public. The following transactions took place during...

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Question

Accounting

The big pen store supplies pens to the public. The following transactions took place during the month of May 2021:

 

14 May: Sold goods on account to Susie's pen store for $3,600, terms 2/10, n/30. The cost of goods sold was $2,800.

 

16 May: The business forwarded a credit note for $280 to Susie's pen store covering part of the goods sold on 14 May which cost $250, and were returned by Susie's pen store as a wrong title.

 

22 May:  The big pen store received a cheque from Susie's pen store in full settlement for the above transactions.

 

Questions

Using the perpetual inventory system, record the above transactions in the general journal of The big pen store. Narrations are not required.
Discuss the advantage of a perpetual inventory system over the periodic inventory system.

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