Geiger Corporation  reportes inventories of $1,320,000 in 2016 and $1,460,000 in 2017. The 2017 income statement reported cost of goods sold of $6,980,000.   Compute the amount of inventory purchase during 2017 and prepare journal entries to record purcahses and cost of goods sold.

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Asked Nov 14, 2019
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Geiger Corporation  reportes inventories of $1,320,000 in 2016 and $1,460,000 in 2017. The 2017 income statement reported cost of goods sold of $6,980,000.   

Compute the amount of inventory purchase during 2017 and prepare journal entries to record purcahses and cost of goods sold. 

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Determine the amount of inventor...

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Cost of goods sold 2016 inventories + Purchases - 2017 inventories = S6,980,000 $1,320,000 Purchases - $1,460,000 Purchases $6,980,000 - $1,320,000+ $1,460,000 Purchases $7,120,000 Therefore, the amount of inventory purchased during 2017 S7,120,000.

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