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10 August, 07:59

Rita Company buys merchandise on account from Linus Company for $590. Rita sells the goods to Ellis for $900 cash. Use a tabular summary to record the transactions for Rita Company using a perpetual inventory system.

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  1. 10 August, 08:36
    0
    Record of transaction is given below

    Explanation:

    given data

    Selling price of goods = $900

    Cost of goods sold = $590

    solution

    we get here Record of transaction in Rita Company that is

    Inventory accounts Dr $900

    Account payable Cr $900

    and

    Record of transaction in Linus Company is

    Account receive able Dr $900

    Sales revenue Cr $900

    and

    Cost of goods sold Dr $590

    Inventory Cr $590
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