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undefined Florida Jewels (Fl) is a jewellery store with a year-end of 30 September. FJ uses the periodic inventory recording system, and the weighted average
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Florida Jewels (Fl) is a jewellery store with a year-end of 30 September. FJ uses the periodic inventory recording system, and the weighted average cost allocation method. During the 2020 financial year-end, FJ made the following purchases of necklaces: Date Amount per necklaces Quantity Total cash paid 16 April 2020 R2 800 12 R33 600 21 May 2020 R3 100 14 R43 400 28 June 2020 R1 900 35 R66 500 TOTAL 61 143 500 FJ sold 55 necklaces during the 2020 financial year. On 30 September 2020, there were 15 necklaces on hand. There was no stock on hand at the start of the 2020 financial year. The bookkeeper of Fi has correctly recorded the above transactions in the general ledger purchases account. On 30 September 2020, which of the following adjusting journal entry/ies should El process to ensure that the cost of sales expense and inventory balances are correctly reflected in the pre-closing trial balance? A. 30 September 2020 CR Cost of sales expense (P/L) CR Purchases 2B 500 28 500 B. 30 September 2020 DR Cost of sales expense (P/L) CR Purchases 143 500 143 500 DR 2B 500 Inventory (A) Cost of sales expense (P/L) CR 2B 500 C. 30 September 2020 CR Purchases CR Bank A) 143 500 143 500 CR 35 287 Inventory (A) Cost of sales expense (P/L) CR 35 287 D. 30 September 2020 DR Purchases CR Bank (P/L) 143 500 143 500 DR 2B 500 Cost of sales expense (P/L) Purchases CR 2B 500 E. 30 September 2020 DR Cost of sales expense (P/L) CR Purchases 143 500 143 500 DR 35 287 Inventory A) Cost of sales expense (P/L) CR 35 257Step by Step Solution
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