Inventory at the beginning of the year cost $13,400. During the year, the company purchased(on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for$95,000. At the end of the year, inventory was counted and its cost was determined to be $17,400.( a ) Show the cost of goods sold equation using these numbers. ( b ) What was the dollar amount ofGross Profit? ( c ) Prepare journal entries to record these transactions, assuming a perpetual inventory system is used

Question

Inventory at the beginning of the year cost $13,400. During the year, the company purchased
(on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for
$95,000. At the end of the year, inventory was counted and its cost was determined to be $17,400.
( a ) Show the cost of goods sold equation using these numbers. ( b ) What was the dollar amount of
Gross Profit? ( c ) Prepare journal entries to record these transactions, assuming a perpetual inventory system is used

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Accounting

Inventory Valuation

Journal and Ledger Balance

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