Account
debit
debit
credit
credit
merchandise inventory, 7/1/15
32,000
sales
380,000
sales returns
12,000
purchases
240,000
purchase discounts
6,000
purchase returns
1
exercise 8-3 determining cost of goods sold; periodic inventory system [lo8-1]
askew company uses a periodic inventory system. the june 30, 2016, year-end trial balance for the company contained the following information:
account
debit
debit
credit
credit
merchandise inventory, 7/1/15
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, 2016, inventory balance is $40,000.
required:
1.
calculate the cost of goods sold for the askew company for the year ending june 30, 2016.
2.
prepare the year-end adjusting entry to record cost of goods sold. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)