Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the company contained the following information:

AccountDebitCreditMerchandise inventory, 7/1/1733,500Sales395,000Sales returns13,500Purchases255,000Purchase discounts7,500Purchase returns11,500Freight-in20,000

In addition, you determine that the June 30, 2018, inventory balance is $41,500.

Required:

1.Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2018.

2.Prepare the year-end adjusting entry to record cost of goods sold.