Inventory at the beginning of the year cost $13,900. During the year, the company purchased (on account) inventory costing $86,500. Inventory that had cost $82,500 was sold on account for $97,000. Required: a. Calculate the amount of ending inventory. b. What was the amount of gross profit? c. Prepare journal entry to record sale of inventory assuming a perpetual system is used. Credit Account Debit
Inventory at the beginning of the year cost $13,900. During the year, the company purchased (on account) inventory costing $86,500. Inventory that had cost $82,500 was sold on account for $97,000. Required: a. Calculate the amount of ending inventory. b. What was the amount of gross profit? c. Prepare journal entry to record sale of inventory assuming a perpetual system is used. Credit Account Debit
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 3E: Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A...
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![Inventory at the beginning of the year cost $13,900. During the year, the
company purchased (on account) inventory costing $86,500. Inventory that had cost $82,500 was
sold on account for $97,000.
Required:
a. Calculate the amount of ending inventory.
b. What was the amount of gross profit?
c. Prepare journal entry to record sale of inventory assuming a perpetual system is used.
Debit
Credit
Account](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfbcced6-f321-4303-9fe3-52a954982b5c%2Fb8b85c84-d833-45f9-bcc3-4c971e607427%2Foiqi6yd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Inventory at the beginning of the year cost $13,900. During the year, the
company purchased (on account) inventory costing $86,500. Inventory that had cost $82,500 was
sold on account for $97,000.
Required:
a. Calculate the amount of ending inventory.
b. What was the amount of gross profit?
c. Prepare journal entry to record sale of inventory assuming a perpetual system is used.
Debit
Credit
Account
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