Assume a company has a periodic inventory system with an opening balance of i20,000, purchases of i150,000,
Question:
Assume a company has a periodic inventory system with an opening balance of i20,000, purchases of i150,000, and sales of i250,000. The company closes its records once a year on 31 December. In the accounting records, the inventory account would be expected to have a balance on 31 December prior to adjusting the closing entries that was:
(a) Equal to i20,000.
(b) More than i20,000.
(c) Less than i20,000.
(d) Cannot tell without more information.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting An International Introduction
ISBN: 9780273685203
2nd Edition
Authors: David Alexander
Question Posted: