Question

Dole Company uses the periodic inventory system. At the end of the accounting​ period, ending inventory is​ $10,000 and beginning inventory is​ $5,000. Purchases for the period are​ $99,000. How many journal entries are necessary at the end of the accounting​ period?

Answer 1

Answer:

The one entry is recorded

Explanation:

The journal entry is shown below:

Inventory A/c Dr (Ending inventory) $10,000

Cost of goods sold A/c Dr (Balancing figure) $94,000

      To Inventory A/c Dr (Beginning inventory)        $5,000

      To Purchase account                                          $99,000

In mathematically,

Cost of goods sold = Beginning inventory + purchase - ending inventory

                                = $5,000 + $99,000 - $10,000

                                = $94,000