Required information Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) [The following information applies to the questions displayed below.] Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Unit Cost Date Transactions Units Total Cost Beginning inventory Sale ($215 each) Purchase Sale ($230 each) Purchase Sale ($240 each) Purchase August 1 8 $158 $ 1,264 August 4 August11 10 148 1,480 August13 8 August20 10 138 1,380 August26 11 August29 10 128 1,280 $ 5,404
Required information Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) [The following information applies to the questions displayed below.] Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Unit Cost Date Transactions Units Total Cost Beginning inventory Sale ($215 each) Purchase Sale ($230 each) Purchase Sale ($240 each) Purchase August 1 8 $158 $ 1,264 August 4 August11 10 148 1,480 August13 8 August20 10 138 1,380 August26 11 August29 10 128 1,280 $ 5,404
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do I record LIFO adjustment?
![Required information
Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four
inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month
of August. Pete's Tennis Shop uses a periodic inventory system.
Unit
Cost
Date
Transactions Units
Total Cost
Beginning
inventory
Sale ($215
each)
Purchase
Sale ($230
each)
Purchase
Sale ($240
each)
Purchase
August 1
8
$158
$ 1,264
August 4
August11
10
148
1,480
August13
8
August20
10
138
1,380
August26
11
1,280
$ 5,404
August29
10
128
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the
August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one
racket from beginning inventory and 10 rackets from the August 20 purchase.
Problem 6-2B Part 7
7. If Pete's chooses to report inventory using LIFO, record the LIFO adjustment. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
>
Record the LIFO adjustment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
August
31
Inventory
Cost of Goods Sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F76fbabf8-31e8-4633-9b5f-02ed8cf12003%2F37e38700-235e-47bc-beca-9c0bc23ac352%2Fix03xm_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four
inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month
of August. Pete's Tennis Shop uses a periodic inventory system.
Unit
Cost
Date
Transactions Units
Total Cost
Beginning
inventory
Sale ($215
each)
Purchase
Sale ($230
each)
Purchase
Sale ($240
each)
Purchase
August 1
8
$158
$ 1,264
August 4
August11
10
148
1,480
August13
8
August20
10
138
1,380
August26
11
1,280
$ 5,404
August29
10
128
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the
August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one
racket from beginning inventory and 10 rackets from the August 20 purchase.
Problem 6-2B Part 7
7. If Pete's chooses to report inventory using LIFO, record the LIFO adjustment. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
>
Record the LIFO adjustment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
August
31
Inventory
Cost of Goods Sold
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