Question
Burr Industries has the following events transpire in June of 2024: Event Details Buy Inventory: Buy 6,000 units of inventory for $6/unit on credit. Sell
Burr Industries has the following events transpire in June of 2024:
Event Details Buy Inventory: Buy 6,000 units of inventory for $6/unit on credit. Sell Inventory: Sell 4,765 units of inventory for $44/unit on credit. Close Books: Books are closed for the month of June.
Additional Info: Inventory is always purchased for $6/unit. Beginning inventory is 1,840 units.
Assuming Burr uses the Perpetual Inventory System.
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What journal entry or entries will Burr provide upon closing its books?
options:
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Dr. Inventory (ending) $18,450 Dr. Purchases $28,590 Cr. Inventory (beginning) $11,040 Cr. Cost of Goods Sold (CGS) $36,000
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Dr. Inventory (ending) $18,450 Dr. Cost of Goods Sold (CGS) $28,590 Cr. Inventory (beginning) $11,040 Cr. Accounts Receivable $36,000
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Dr. Inventory (ending) $18,450 Dr. Cost of Goods Sold (CGS) $28,590 Cr. Inventory (beginning) $11,040 Cr. Purchases $36,000
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N/A; No journal entry is required.
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