(Compute the missing 12/31/97 12/31/96 12/31/95 1 2/31 /94 values) Beginning inventory $110,000 9

• $125,000 $ 90,000 Purchases 9

• $ 75,000 60,000 50,000 Purchase discounts (10,000) 9

• (5,000) 9

•

Cost of goods available for sale 155,000 190,000 9 e 135,000 Ending inventory 75,000 9

• 130,000 9

•

Cost of goods sold 9

• 80,000 50,000 10,000 Chapter 7 Merchandise Inventory 343 REQUIRED:

a. Compute the missing information for each year.

b. Assume that House Designs uses the periodic method to account for inventory. Prepare the end-of-period entry to recognize the ending inventory and Cost of Goods Sold at the end of each year.