Account
Debit
Debit
Credit
Credit
Merchandise inventory, 7/1/15
32,000
Sales
380,000
Sales returns
12,000
Purchases
240,000
Purchase discounts
6,000
Purchase returns
1
Exercise 8-3 Determining cost of goods sold; periodic inventory system [LO8-1]
Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information:
Account
Debit
Debit
Credit
Credit
Merchandise inventory, 7/1/15
32,000
Sales
380,000
Sales returns
12,000
Purchases
240,000
Purchase discounts
6,000
Purchase returns
10,000
Freight-in
17,000
In addition, you determine that the June 30, 2016, inventory balance is $40,000.
Required:
1.
Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2016.
2.
Prepare the year-end adjusting entry to record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Debit
Debit
Credit
Credit
Merchandise inventory, 7/1/15
32,000
Sales
380,000
Sales returns
12,000
Purchases
240,000
Purchase discounts
6,000
Purchase returns
1
Exercise 8-3 Determining cost of goods sold; periodic inventory system [LO8-1]
Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information:
Account
Debit
Debit
Credit
Credit
Merchandise inventory, 7/1/15
32,000
Sales
380,000
Sales returns
12,000
Purchases
240,000
Purchase discounts
6,000
Purchase returns
10,000
Freight-in
17,000
In addition, you determine that the June 30, 2016, inventory balance is $40,000.
Required:
1.
Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2016.
2.
Prepare the year-end adjusting entry to record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)