Question
Required information [The following information applies to the questions displayed below.] Inventory at the beginning of the year costs $13,500. During the year, the company
Required information
[The following information applies to the questions displayed below.]
Inventory at the beginning of the year costs $13,500. During the year, the company purchased (on account) inventory costing $84,500. Inventory that had cost $80,500 was sold on account for $95,400. At the end of the year, inventory was counted and its cost was determined to be $17,500.
Prepare journal entries to record these transactions, assuming a perpetual inventory system is used. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
a. Record the inventory purchased of $84,500 on account.
b. Record the sales revenue of $95,400 on account.
c. Record the cost of goods sold of $80,500.
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