Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.3E
Determining cost of goods sold; periodic inventory system
• LO8–1
Askew Company uses a periodic inventory system. The June 30, 2018, year-end
| Account | Debit | Credit |
| Merchandise inventory, 7/1/17 | 32,000 | |
| Sales | 380,000 | |
| Sales returns | 12,000 | |
| Purchases | 240,000 | |
| Purchase discounts | 6,000 | |
| Purchase returns | 10,000 | |
| Freight-in | 17,000 |
In addition, you determine that the June 30, 2018, inventory balance is $40,000.
Required:
- 1. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2018.
- 2. Prepare the year-end
adjusting entry to record cost of goods sold.
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Chapter 8 Solutions
Intermediate Accounting
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