A company purchases inventory for \$15,000, receives a discount of \$750, and returns \$1,500 worth of goods. How do these transactions affect the inventory account?

How does COGS affect the inventory account in a perpetual system?

Using a T account, determine the ending inventory balance given: Beginning Inventory \$25,000, Purchases \$20,000, Purchase Discounts \$1,000, Purchase Returns \$2,000, and COGS \$15,000.

What is a key characteristic of a perpetual inventory system?

A company starts with an inventory of \$50,000, makes purchases of \$30,000, receives purchase discounts of \$1,000, returns \$2,000 worth of goods, and has COGS of \$25,000. What is the ending inventory balance?

Given the following transactions: Beginning Inventory \$20,000, Purchases \$15,000, Purchase Discounts \$1,000, Purchase Returns \$2,000, and COGS \$10,000, what is the ending inventory balance using a T account?

What role does COGS play in a perpetual inventory system?

How does a perpetual inventory system ensure accurate inventory records?

Why is accurate record-keeping important in a perpetual inventory system?