Question

Selected accounts and amounts appear below.

Inventory $53,529
Cost of Goods Sold 507,045

Journalize the closing entry, assuming a perpetual inventory system. If an amount box does not require an entry, leave it blank.

Answer 1

The student's question pertains to journalizing a closing entry for COGS in a perpetual inventory system. Typically, COGS is closed by debiting income summary and crediting COGS. Inventory is an asset and remains on the balance sheet.

Step-by-step explanation:

The student is asking how to journalize the closing entry for inventory and cost of goods sold (COGS) in a perpetual inventory system. In such a system, inventory and COGS are continuously updated. To close these accounts at the end of the period, typically only the income summary account is used.

However, since there are no revenues or expenses provided other than COGS, and we are not given the information to close the income summary account, we cannot specifically provide the full closing entry.

Typically, the entry would involve debiting income summary and crediting COGS to close it. Inventory would not be closed as it is an asset account and remains on the balance sheet.