Question 8 Questions 8, 9, 10, and 11 are based on the following information ABC Co uses a periodic approach to accounting for inventory On December 31, 20X7, an inventory count was performed resulting in a determination that the year end inventory balance was $700,000 December 31, 20X7 year end account balances before considering the inventory count were as follows Sales $5,800,000 Inventory $620,000 Purchases $3,400,000 What adjusting entries are needed on December 31, 20X7 to account for inventory a Cost of goods sold 4,100,000 Inventory 700,000 Purchases3,400,000 To record purchases and beginning (1 1 X7) inventory as parts of cost of goods sold and Inventory620,000 Cost of goods sold 620,000 To record ending 12 31 X7 inventory balance based on a physical count b Cost of goods sold3,380,000 Inventory 20,000 Purchases 3,400,000 To record purchases as part of cost of goods sold and adjust inventory c Inventory 700,000 Cost of goods sold2,700,000 Purchases3,400,000 To record purchases as part of cost of goods sold and adjust inventory d Cost of goods sold 4,020,000 Inventory 620,000 Purchases3,400,000 To record purchases and beginning (1 1 X7) inventory as parts of cost of goods sold and Inventory700,000 Cost of goods sold 700,000 To record ending 12 31 X7 inventory balance based on a physical count

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Question 8 Questions 8, 9, 10, and 11 are based on the following information . ABC Co. uses a periodic approach to accounting for inventory.

Question 8

Questions 8, 9, 10, and 11 are based on the following information. ABC Co. uses a periodic approach to accounting for inventory. On December 31, 20X7, an inventory count was performed resulting in a determination that the year-end inventory balance was $700,000. December 31, 20X7 year-end account balances before considering the inventory count were as follows:

Sales.$5,800,000

Inventory.$620,000

Purchases..$3,400,000

What adjusting entries are needed on December 31, 20X7 to account for inventory?

	a.	Cost of goods sold...4,100,000 Inventory.......700,000 Purchases3,400,000 To record purchases and beginning (1/1/X7) inventory as parts of cost of goods sold. and Inventory620,000 Cost of goods sold................................620,000 To record ending 12/31/X7 inventory balance based on a physical count.
	b.	Cost of goods sold3,380,000 Inventory...20,000 Purchases...3,400,000 To record purchases as part of cost of goods sold and adjust inventory.
	c.	Inventory.700,000 Cost of goods sold2,700,000 Purchases3,400,000 To record purchases as part of cost of goods sold and adjust inventory.
	d.	Cost of goods sold...4,020,000 Inventory.......620,000 Purchases3,400,000 To record purchases and beginning (1/1/X7) inventory as parts of cost of goods sold. and Inventory700,000 Cost of goods sold................................700,000 To record ending 12/31/X7 inventory balance based on a physical count.