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Inventory at the beginning of the year cost $14,200. During the year, the company purchased (on account) inventory costing $88,000. Inventory that had cost $84,000
Inventory at the beginning of the year cost $14,200. During the year, the company purchased (on account) inventory costing $88,000. Inventory that had cost $84,000 was sold on account for $98,200. At the end of the year, inventory was counted and its cost was determined to be $18,200.
Prepare journal entries to record these transactions, assuming a perpetual inventory system is used.
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