Bridget Corporation purchased inventory costing $110,000 and sold 80%

of the goods for $148,000. All purchases and sales were on account. Bridget later collected 25%

of the accounts receivable. Assume that sales returns are nonexistent.

.

1. Journalize these transactions for

Bridget,

which uses the perpetual inventory system.

Journalize the purchase of inventory. (Record debits first, then credits. Exclude explanations from any journal entries.)

	Journal
	Accounts	Debit	Credit

Journalize the sale.

	Journal
	Accounts	Debit	Credit

Record the cost of goods sold portion of the sale.

	Journal
	Accounts	Debit	Credit

Record the collection of

25%

of the accounts receivable.

	Journal
	Accounts	Debit	Credit

2. For these transactions, show what

Bridget

will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement. Assume beginning inventory is $0. (If an input field is not used in the table leave the field empty; do not enter a label or enter a zero.)

Determine what the company will report on the balance sheet:

Balance Sheet

Determine what the company will report on the income statement:

Income Statement

Requirements

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1.	Journalize these transactions for Bridget, which uses the perpetual inventory system.
2.	For these transactions, show what Bridget will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement. Assume beginning inventory is $0.