Question
Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2019,
Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2019, there were 225 cartridges on hand at a cost of $62 each. During 2019, Printer Supply purchased 1,475 cartridges at $62 each, sold 830 cartridges at $95 each, and sold an additional 710 cartridges at $102 each after a midyear selling price increase. Printer Supply returned 15 defective cartridges to the supplier. In addition, customers returned 20 cartridges that were purchased at $102 to Printer Supply for various reasons. Assume that Printer Supply uses a periodic inventory system.
Required: | |
1. | Prepare journal entries to record the purchases, sales, and return of inventory. Assume that all purchases and sales are on credit but no discounts were offered. |
2. | What is the cost of ending inventory, cost of goods sold, and gross profit for 2019? |
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Chart Of Accounts
CHART OF ACCOUNTS | ||||||||||||
Printer Supply Company | ||||||||||||
General Ledger | ||||||||||||
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