Intermediate Accounting: E8-3 Askew Company uses a periodic inventory system

Intermediate Accounting
E8-3 Determining cost of goods sold; periodic inventory system
Askew Company uses a periodic inventory system. The June 30, 2011, year end trial balance for the company contained the following information:
Account Debit Credit
Merchandise inventory, 7/1/10 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, 2011, inventory balance is $40,000.

Calculate the cost of goods sold for the company for the year ending une 30, 2011 and prepare the year-end adjusting entry to record the cost of goods sold.
Powered by