Exercise 8-3 Determining cost of goods sold; periodic inventory system [LO8-1]

Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information:

Account	Debit		Credit
Merchandise inventory, 7/1/15	33,400
Sales			394,000
Sales returns	13,400
Purchases	254,000
Purchase discounts			7,400
Purchase returns			11,400
Freight-in	19,800

In addition, you determine that the June 30, 2016, inventory balance is $41,400.

Required:

1.	Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2016.

2.	Prepare the year-end adjusting entry to record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)