Question
Notes for Journal Entries: Kuechly uses periodic inventory system and LIFO All credit sales discounts are recorded using the net method customers receive a 3
Notes for Journal Entries:
- Kuechly uses periodic inventory system and LIFO
- All credit sales discounts are recorded using the net method customers receive a 3 percent discount if they pay within 30 days.
- Purchase discounts are recorded using the net method
- All depreciation is straight line
Purchased 1,000 units of inventory at $150 a piece on credit from Biggie Smalls Inc. Terms are 2/10; n/60
Paid Biggie full amount owed
Sold inventory with a list price of $22,000 to M Jagger on credit
Accepted a sales return from M Jagger for half of the inventory purchased (i.e., list price of $11,000); And M Jagger paid for the remainder in cash.
Bought 1,000 units of inventory at $170 from Wolfpack Corporation with cash
Returned 100 units of inventory to Wolfpack Corporation for cash
Sold inventory to H Gilmore for $100,000 on credit
H Gilmore paid half of the amount owed
H Gilmore went bankrupt so Kuechly wrote off the balance owed by H Gilmore as uncollectible (hint: Directly write-off this Account since no allowance has been made yet).
Sold Inventory to J Lennon for $30,000 on Credit
Sold Inventory for $200,000 in Cash
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A physical count of inventory finds the 12/31/20 balance to be 500 units of inventory (the company uses LIFO Periodic Inventory System)
What is the adjusting journal entry for this and how is COGS found?
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