Sigma Company had Inventory balance at the beginning of January in the amount of $315 000. The following transactions were completed by Sigma Company during January of the current year. Signa Company uses perpetual inventory system. Jan 2022 Purchased a merchandise on account from Alpha Co for $90,000, terms FOB shipping point, 3/15, n/30 with freight of $500 paid by cash. Jan 2022 Sold merchandise on account $75,000 to Beta Co, terms 2/10, n/30. The cost of the merchandise sold was 80% of sales. Jan 2022 Purchased inventory for $64,000 cash. Jan 2022 Returned $22,000 of merchandise purchased on 5 Jan 2022 receiving full credit. Jan 2022 Beta Co returned merchandise from sale on 6th of January, $10,000. The cost of returned merchandise was $8,000. Jan 2022 Received half of payment due from Beta Co. Jan 2022 Paid the amount due to Alpha Co. Required: Journalize each transaction Determine the cost of goods sold What is the Inventory balance at the end of January? Required: Journalize each transaction Determine the cost of goods sold What is the Inventory balance at the end of January? with step by step explanation PLEASE DO NOT GIVE SOLUTION IN IMAGE FORMAT
Sigma Company had Inventory balance at the beginning of January in the amount of $315 000. The following transactions were completed by Sigma Company during January of the current year. Signa Company uses perpetual inventory system.
Jan 2022 Purchased a merchandise on account from Alpha Co for $90,000, terms FOB shipping point, 3/15, n/30 with freight of $500 paid by cash.
Jan 2022 Sold merchandise on account $75,000 to Beta Co, terms 2/10, n/30. The cost of the merchandise sold was 80% of sales.
Jan 2022 Purchased inventory for $64,000 cash.
Jan 2022 Returned $22,000 of merchandise purchased on 5 Jan 2022 receiving full credit.
Jan 2022 Beta Co returned merchandise from sale on 6th of January, $10,000. The cost of returned merchandise was $8,000.
Jan 2022 Received half of payment due from Beta Co.
Jan 2022 Paid the amount due to Alpha Co.
Required:
Journalize each transaction
Determine the cost of goods sold
What is the Inventory balance at the end of January?
Required:
Journalize each transaction
Determine the cost of goods sold
What is the Inventory balance at the end of January?
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