Local Hardware uses the periodic inventory method. At the end of the accounting period, the company takes a physical inventory and finds that $20,671 of goods are on hand. Purchases during the period were $76,216, and inventory at the beginning of the period was $25,632. Freight on merchandise coming into the business was $2,799, and returns of merchandise to suppliers amounted to $1,776. Record the journal entry to be made by the Local at the end of the accounting period to close the old inventory and record the new one.

Local Hardware uses the periodic inventory method. At the end of the accounting period, the company takes a physical inventory and finds that $20,671 of goods are on hand. Purchases during the period were $76,216, and inventory at the beginning of the period was $25,632. Freight on merchandise coming into the business was $2,799, and returns of merchandise to suppliers amounted to $1,776. Record the journal entry to be made by the Local at the end of the accounting period to close the old inventory and record the new one.

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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Local Hardware uses the periodic inventory method. At the end of the
accounting period, the company takes a physical inventory and finds
that $20,671 of goods are on hand. Purchases during the period were
$76,216, and inventory at the beginning of the period was $25,632.
Freight on merchandise coming into the business was $2,799, and
returns of merchandise to suppliers amounted to $1,776.
Record the journal entry to be made by the Local at the end of the
accounting period to close the old inventory and record the new one.

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