AP-23A

Chapter 7 AP-23A LO 911 The following information was taken from the financial records of Redmond Distribution, owned by Marcus Redmond, at its year end of December 31, 2018. The company uses the periodic inventory system $1,400 3.200 Freight-In Interest Expense 150,000 Merchandise Inventory, January 1, 2018 120,000 Merchandise Inventory, December 31, 2018 13,800 Purchase Returns & Allowances 100,000 Purchases 30,000 Rent Expense 44,000 Salaries Expense 9,200 Sales Discounts 250,000 Sales Revenue Required a) Calculate the cost of goods sold for Redmond Distribution for 2018. b) Prepare the closing entries for Redmond Distribution for 2018 using the income summary method. Debit Credit Date Account Title and Explanation