Question

Kens Bait Shop had a beginning balance in its inventory account of $8,000. During the accounting period, ken purchased $36,900 of inventory, obtained 1,200 of purchase allowances and received 360 of purchase's discounts sales discounts cost amounted to 12,300 costs of goods sold amounted to 33,900.

Answer 1

To calculate the ending balance in the inventory account, we start with the beginning balance and then adjust for purchases, purchase allowances, purchase discounts, and cost of goods sold.

Here’s how you can calculate it:

Beginning Inventory: $8,000

Add Purchases: $36,900

Subtract Purchase Allowances: $1,200

Subtract Purchase Discounts: $360

Subtract Cost of Goods Sold: $33,900

So, the calculation would be:

Ending Inventory = Beginning Inventory + Purchases - Purchase Allowances - Purchase Discounts - Cost of Goods Sold

Let’s calculate it. [assistant to=python code]–>

Given values

beginning_inventory = 8000 purchases = 36900 purchase_allowances = 1200 purchase_discounts = 360 cost_of_goods_sold = 33900

Calculate ending inventory

ending_inventory = beginning_inventory + purchases - purchase_allowances - purchase_discounts - cost_of_goods_sold

ending_inventory [assistant]–> The ending balance in the inventory account for Ken’s Bait Shop is approximately $9,440. Please note that this is an approximation and actual figures may vary based on additional factors not included in this calculation.

Step-by-step explanation: