Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ACC 301 Cost of Goods O Prince Company's accounting records show the following at year end. Beginning inventory Ending inventory Freight-in Freight-out 37,950 21,720 7,110
ACC 301 Cost of Goods O Prince Company's accounting records show the following at year end. Beginning inventory Ending inventory Freight-in Freight-out 37,950 21,720 7,110 9,455 Purchases Purchase discounts Purchase returns & allowances 152,600 5,742 2,990 1. Compute cost of goods sold. Label each amount. Show amounts for net purchases, cost of goods available for sale, and cost of goods sold. 2. Since the company uses a periodic inventory system, they do not have a balance in their cost of goods sold account, and the inventory account has the amount of the beginning inventory in it. Make a journal entry to record cost of goods sold, replaces the beginning inventory with the ending company and closes out the temporary accounts used to accumulate purchases, purchase returns and freight in.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started