Answer:
Dr. Cr.
(1)
The company purchased
195 units at $44 each
Inventory (195 x 44) 8,580
Account Payable / Cash 8,580
(2)
Returned 8 units
for credit
Account Payable / Cash 352
Inventory (8 x 44) 352
(3)
Sold 163 units
at $65 each.
Account receivable / Cash 10,595
Sales ( 163 x 65 ) 10,595
Cost of Goods sold 7,172
Inventory 7,172
Inventory Account: Dr. Cr. Balance
Opening Balance ( 65 x $44 ) $2,860
(1) Purchase $8,580 $11,440
(2) Purchase Return $352 $11,088
(3) Sale $7,172 $3,916
Inventory Closing Value is $3,916.
