Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information: Account Credit Debit 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.

Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information: Account Credit Debit 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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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