Question
The following information is available for the Johnson Corporation: Beginning inventory $ 45,000 Inventory purchases (on account) 175,000 Freight charges on purchases (paid in cash)
The following information is available for the Johnson Corporation:
| Beginning inventory | $ | 45,000 | |
| Inventory purchases (on account) | 175,000 | ||
| Freight charges on purchases (paid in cash) | 30,000 | ||
| Inventory returned to suppliers (for credit) | 32,000 | ||
| Ending inventory | 50,000 | ||
| Sales (on account) | 270,000 | ||
| Cost of inventory sold | 168,000 | ||
Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.
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Financial Accounting Theory and Analysis Text and Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
10th edition
470646284, 978-0470646281
