Answer the following question:

Madeline Inc. uses the periodic system for recording inventory. Just prior to the year-end inventory count on April 30, 20X2 the company has the following information:

Inventory (beginning) $572,000 (unchanged from May 1, 20X1)

Purchases $7,436,000

On April 30, the physical count for the inventory totaled $483,000.

Prepare the journal entries at 30 April 2X2 to adjust the inventory to its correct balance and set up the cost of goods sold for the year.

April 30: Dr. Inventory (ending) 483,000 Dr. Cost of goods sold 7,525,000 Cr. Purchases 7,436,000 Cr. Inventory (beginning) 572,000

Is it possible to do this entry in multiple entries using Dr Asset Cr Cash or Liability and Y/E entry Dr Expense Cr Asset or Contra Asset? Explain using T-accounts if possible as well.