Waren's Gift Shop uses a periodic inventory system. At December 31, Year 1, the accounting E records include the following information: Inventory (as of December 31, Year 1) $ 10,400 198.300 105,000 .... Net sales .... Purchases A complete physical inventory taken at December 31, Year 2, indicates merchandise cost- ing $9.600 remains in stock. a How were the amounts of beginning and ending inventory determined? b. Compute the amount of the cost of goods sold in Year 2. c. Prepare two closing entries at December 31, Year 2, that will have the effects of creating a Cost of Goods Sold account with the appropriate balance and bringing the Inventory account up-to-date.

Waren's Gift Shop uses a periodic inventory system. At December 31, Year 1, the accounting E records include the following information: Inventory (as of December 31, Year 1) $ 10,400 198.300 105,000 .... Net sales .... Purchases A complete physical inventory taken at December 31, Year 2, indicates merchandise cost- ing $9.600 remains in stock. a How were the amounts of beginning and ending inventory determined? b. Compute the amount of the cost of goods sold in Year 2. c. Prepare two closing entries at December 31, Year 2, that will have the effects of creating a Cost of Goods Sold account with the appropriate balance and bringing the Inventory account up-to-date.

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Description: Exercises223Waren's Gift Shop uses a periodic inventory system. At December 31, Year 1, the sccounting EXERCISE 5.7records include the following information:Periodic Inventory SystemsLO 4Inventory (as of December 31, Year 1)Net sales..$ 10,400198.30

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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