Answer:
Askew Company
1. Cost of goods sold $243,000
2. Adjusting Journal Entries:
Debit Cost of Goods Sold $243,000
Debit Purchases discounts $7,000
Credit Freight-in $19,000
Credit Inventory $231,000
To record the cost of goods sold.
Explanation:
a) Data and Calculations:
Account Debit Credit
Merchandise inventory, 7/1/17 33,000
Sales 390,000
Sales returns 13,000
Purchases 250,000
Purchase discounts 7,000
Purchase returns 11,000
Freight-in 19,000
Merchandise inventory, 7/1/17 $33,000
Purchases 250,000
Purchase discounts (7,000)
Purchase returns (11,000)
Freight-in 19,000
Cost of goods available for sale $284,000
June 30, 2018, inventory balance $41,000
Cost of goods sold $243,000
Adjusting Entry:
Debit Cost of Goods Sold $243,000
Debit Purchases discounts $7,000
Credit Freight-in $19,000
Credit Inventory $231,000
To record the cost of goods sold.
