Question
Cost of goods sold closing entry: Quickbooks automatically debits COGS and credits inventory for the product cost for each sale. The inventory account is also
Cost of goods sold closing entry:
Quickbooks automatically debits COGS and credits inventory for the product cost for each sale. The inventory account is also automatically updated for inventory purchases and purchases returns. Therefore, the Quickbooks data does not include the following accounts from the SUA: A/C #30500 (Purchases) and A/C #30600 (Purchase Returns and Allowance). Warren treats purchase discounts taken and freight-in as a part of COGS, but records them in seperate accounts during the accounting period. Therefore, these two accounts must be closed to A/C #30400 (COGS): A/C #30700 (Purchases Discounts Taken) and A/C #30800 (Freight-In).
*Before preparing the general journal entry, determine the balance in each account being closed to COGS. Determine the balance in the accounts to be closed by examining the income statement
What would be the closing entry I put in quickbooks and which numbers would I use on the income statement?
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