Question

The June 30, 2021, year-end trial balance for Askew company contained the following information:

Account Debit Credit
Inventory, 7/1/2020 32,600
Sales revenue 386,000
Sales returns 12,600
Purchases 246,000
Purchase discounts 6,600
Purchase returns 10,600
Freight-in 18,200

In addition, you determine that the June 30, 2021, inventory balance is $40,600.

Required:
a. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2011
b. Prepare the year-end adjusting entry to record cost of goods sold.

Answer 1

tell me your score, did you do good?

Answer 2

The answer is:

A. $239,000

B.

June 30

Dr Cost of goods sold. $239,000

Closing Inventory $40,600

Purchase returns $10,600

Purchase discounts $ 6,600

Cr Opening Inventory. $ 32,600

Purchase $247,000

Freight-in $18,200

Step-by-step explanation:

Net purchase is

Purchases. $246,000

Minus: Purchase discounts $6,600

Minus:Purchase returns $10,600

Plus: Freight-in $18,200

Net purchase. $247,000

A.

Cost of sales:

Opening Inventory $32,600

Plus: Purchases. $247,000

Minus: closing Inventory. $40,600

Cost of sales. $239,000

B.

June 30

Dr Cost of goods sold. $239,000

Closing Inventory $40,600

Purchase returns $10,600

Purchase discounts $ 6,600

Cr Opening Inventory. $ 32,600

Purchase $247,000

Freight-in $18,200