In a periodic system, no attempt is made to keep an ongoing record of a company’s inventory. Instead, the quantity and cost of merchandise is only determined periodically as a preliminary step in preparing financial statements. How is the actual recording of an inventory purchase carried out in a periodic system? Answer: If a company uses a periodic inventory system, neither the cost nor the quantity of the specific inventory items on hand is monitored. These data are not viewed by company officials as worth the cost and effort required to gather it. However, transactions still take place and a record must be maintained of the costs incurred. This information is eventually used for financial reporting but also— more immediately—for control purposes. Regardless of the recording system, companies want to avoid spending unnecessary amounts on inventory as well as tangential expenditures, such as transportation and assembly. If the accounting system indicates that a particular cost is growing too rapidly, alternatives can be investigated before the problem becomes serious. Periodic systems are designed to provide such information through the use of separate general ledger T-accounts for each cost incurred. Assume that Rider uses a periodic inventory system. Its journal entries for the acquisition of the Model XY-7 bicycle are as follows. No subsidiary ledger is maintained. The overall cost of the inventory item is not readily available and the quantity (except by visual inspection) is unknown. At any point in time, company officials do have access to the amounts spent for each of the individual costs (such as transportation and assembly) for monitoring purposes.
online loan reviews
fast payday loans madisonville ky
title cash loans
cash loans davenport ia
cash loans bowling green ohio
payday loans russellville ky
cash loan Bowling Green
payday loans indiana pa
payday loans north carolina laws
payday loan ames iowa
payday loan rules indiana
quick loans kampala
fixed rate loan
discount payday loans
best short term loan
bad credit secured personal loans
cash loan lenders online
payday loans lebanon indiana
payday loans locations in san antonio tx
borrow money with bad credit
cash loans las vegas no credit check
cash loans dickson tn
Obviously, in this computer age, perpetual inventory systems have come to dominate because they provide valuable information to company officials. However, some types of businesses will simply never change from the simplicity of a periodic system. A beauty salon or barber shop, for example, where services are rendered but a small amount of inventory is kept on hand for occasional sales, would certainly not need to absorb the cost of a perpetual system. Visual inspection can alert the employees as to the quantity of inventory on hand. Restaurants, sandwich shops, ice cream stores, and the like might well choose to use a periodic system because purchasing usually takes place at the establishment where quantities are easy to observe and manage. The information provided by a perpetual system does not necessarily provide additional benefit.
payday loans chandler arizona
ace payday loans south carolina
payday loan louisiana laws
payday loans milford delaware
cash loans wichita kansas
cash advance loans in virginia beach
desperately need money
loans for bad credit history
safe loans online
text loans for bad credit
online loan
fast cash huntsville al
payday loans northlake il
fast cash title loans las vegas
cash loan Roswell
quick credit loan company
payday loan fort wayne indiana
payday loans las vegas open sundays
get cash loan bad credit
payday loan youtube
fast loan with no bank account
payday loans houston tx 77015
quick cash 1 hour
payday loans melbourne florida
cash loan stores dallas tx
best rate for personal loan
payday loan online colorado



Payday Loans

© 2015 All rights reserved.

Make a free websiteWebnode