Perpetual Inventory System Journal Entries

The perpetual inventory system journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting under a perpetual inventory system.

In each case the perpetual inventory system journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section.

Typical Perpetual Inventory System Journal Entries


To purchase goods from a supplier using perpetual inventory system journal entries
Account Debit Credit
Inventory XXX
Accounts payable XXX

To record a supplier purchase discount
Account Debit Credit
Inventory XXX
Accounts payable XXX

To record freight costs
Account Debit Credit
Inventory XXX
Accounts payable XXX

To record a purchase return to a supplier using perpetual inventory system journal entries
Account Debit Credit
Accounts payable XXX
Inventory XXX

To record the sale of goods to a customer using perpetual inventory system journal entries
Account Debit Credit
Cost of goods sold XXX
Inventory XXX
Sales XXX
Accounts receivable XXX

To record a sales return from a customer using perpetual inventory system journal entries
Account Debit Credit
Inventory XXX
Cost of goods sold XXX
Sales returns XXX
Accounts receivable XXX

To record a physical inventory count shortage
Account Debit Credit
Loss on inventory write down XXX
Inventory XXX

To record inventory received not invoiced by supplier
Account Debit Credit
Inventory XXX
Inventory received not invoiced XXX

*It should be noted that for a perpetual inventory system, there is no end of period bookkeeping entry.

Perpetual vs Periodic Inventory System Journal Entries

This reference guide is for the perpetual inventory system, if the business is using a periodic inventory system the journal entries are different and can be seen in our periodic inventory system journal entries reference guide.

perpetual v periodic v 1.0
Perpetual vs Periodic Inventory System Journal Entries

The perpetual vs periodic inventory system journal entries diagram used in this tutorial is available for download in PDF format by following the link below.

Perpetual Inventory System Journal Entries November 6th, 2016Team

You May Also Like


Related pages


how to calculate a markupformula total variable costadjusting journal entry for bad debt expensewhat is a sundry expenseequation for annuityaccounts receivable control ledgerhow to calculate days sales in inventorycalculate ratios in exceladjusting entry exampledefinition shrinkagepremium on bonds payable balance sheettvc calculationperpetual system accountingprepaids accountingformula for markupaccounting general entriesretained earning balance sheethow to calculate beginning finished goods inventoryvacation accrual accountingcompounding continuously interest calculatorcash flow cycle formuladepreciation vs amortisationcash book accounting exampleprove it bookkeeping testrestaurant bookkeeping templatesaccounts ledger templateis stationary a fixed assethow to calculate yield in excelprepare a multi step income statementdiscount calculator formulawhat is meant by journal voucherjournal entry of provision for bad debtsaccrual based accounting examplebank reconciliation statement notes pdfwhat is debtors turnoveris accounts receivable a debit or creditcash receipt journal entryfbo shippingentry for prepaid insurancecalculating sales mixhow to calculate stock split 2 for 1rent prepaid journal entryaccounting worksheet examplewhat is account receivable turnovercash flow to creditors formulathe difference between margin and markupweighted average contribution margin ratio formulaa total materials variance is analyzed in terms ofvendor reconciliation processbalance sheet projections exampleretained earning exampleaccelerated depreciation calculationcash book template excelbookkeeping format in excelwhat are selling expenses on income statementreturn on capital employed calculatorwhat is factoring of accounts receivabledepletion of coalsubsidiary general ledgeraccounts payable and accrued expensesimprest cashaccounts receiveable turnoverstatement of income and retained earnings templateunrealized gain journal entrybookkeeping templates for small business excelformula of markupvariance costingbasics of balance sheet analysissingle entry book keepingexamples of manufacturing overheadaccounting amortization scheduledefine debtorcost of good sold formula manufacturingpetty cash balancenormal balance of assets