Ch 7 Cost of goods sold.docx ACC 301 - Cost of Goods Prince Company's accounting records show the following at year end. 1. Compute cost of goods sold. Label each amount. Show amounts for net purchases, cost of goods available for sale, and cost of goods sold. 2. Since the company uses a periodic inventory system, they do not have a balance in their cost of goods sold account, and the inventory account has the amount of the beginning inventory in it. Make a journal entry to record cost of goods sold, replaces the beginning inventory with the ending company and closes out the temporary accounts used to accumulate purchases, purchase returns and freight in