PURCHASES, SALES, AND COST OF GOODS SOLD. Printer Supply Company sells computer printers and printer supplies. One of its products is toner cartridges for laser printers. At the beginning of 19x8 there were 200 cartridges on hand at a cost of $60 each. During 19x8 Printer Supply Company purchased 1,400 cartridges at $60 each, sold 800 cartridges at $95 each, and sold an additional 750 cartridges at $102 each after a midyear selling price increase. Assume that Printer Supply Company uses the periodic system. lol REQUIRED:
1. Prepare summary journal entries to record the purchases and the sales. Assume that all purchases and sales are on credit but that no discounts were offered.
2. Prepare the adjusting entries necessary at year-end to produce the proper balance in the cost of goods sold account.
3. Prepare entries to close cost of goods sold and sales revenue.