Chapter 6A, Problem 6P

(Record transactions in the periodic system; report inventory items in the financial statements) Accounting records for Just Desserts, Inc., show the following data for the year ended December 31, 2018 (amounts in thousands)

Inventory, Dec 31, 2017 .............................................	$ 510
Purchases of inventory (on account) ..........................	1,180
Sales of inventory—80% on account, 20% for cash ...	3,400
Inventory at the lower of FIFO cost on marker, Dec 31, 2018 ........................	690

Requirements

  1.    Journalize Just Desserts’ inventory transactions for the year under the periodic system. Show all amounts in thousands.

  2.    Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands). Show the computation of cost of goods sold.