Share
Explore BrainMass

Askew Company uses a periodic inventory system. The June 30

Please see the attached problem for proper format.

It is very important that you explain to me how you arrived at your answers.

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 $40,000.

1. Calculate the cost of goods sold for the Askew Company for year ending June 30, 2011.
2. Prepare the year-end adjusting entry to record cost of goods sold.

Attachments

Solution Preview

Askew Company uses a periodic inventory system. The June 30, 2011, year-end trial balance for the company contained the following ...

Solution Summary

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 $40,000.

1. Calculate the cost of goods sold for the Askew Company for year ending June 30, 2011.
2. Prepare the year-end adjusting entry to record cost of goods sold.

$2.19