Question

Cost of Goods Sold

Answer 1

Crane Pro Shop Journal entries Date Account 5-Apr Inventory Accounts Payable Credit Calculation Debit $ 1,900 $ 1,900 $ 80 7-Apr Inventory Cash $ 80 $ 500 9-Apr Accounts Payable Inventory $ 500 $ 1,200 10-Apr Accounts Receivable Sales revenue $ 1,200 $ 820 10-Apr Cost of goods sold Inventory $ 820 $ 1,070 12-Apr Inventory Accounts Payable $ 1,070 $ 1,400 =1,900-500 14-Apr Accounts Payable Cash Inventory $ $ 1,358 42 =1,400*3% $ 70 17-Apr Accounts Payable Inventory $ 70 $ 970 20-Apr Accounts Receivable Sales revenue $ 970 $ 550 20-Apr Cost of goods sold Inventory $ 550 $ 1,000 =1,070-70 21-Apr Accounts Payable Cash Inventory $ $ 990 10 =1,000*1% $ 75 27-Apr Sales Returns & Allowances Accounts Receivable $ 75 $ 1,150 30-Apr Cash Accounts Receivable $ 1,150

Crane Pro Shop T Accounts Date Debit Date Credit Cash Op bal $ 2,910 7-Apr $ 80 30-Apr $ 1,150 14-Apr $ 1,358 21-Apr $ 990 Date Debit Date Credit Accounts Receivable 10-Apr $ 1,200 27-Apr $ 75 20-Apr $ 970 30-Apr $ 1,150 Date Debit Date Credit Inventory Op bal $ 3,500 9-Apr $ 500 5-Apr $ 1,900 10-Apr $ 820 7-Apr $ 80 14-Apr $ 42 12-Apr $ 1,070 17-Apr $ 70 20-Apr $ 550 21-Apr $ 10 Date Debit Date Credit Accounts Payable 9-Apr $ 500 5-Apr $ 1,900 14-Apr $ 1,400 12-Apr $ 1,070 17-Apr $ 70 21-Apr $ 1,000 Bal. Bal. $ $ 1,632 Common Stock Op bal $ 945 Sales Revenue 10-Apr $ 1,200 20-Apr $ 970 Bal. $ 4,558 Sales Returns & Allowances 27-Apr $ 75 $ 6,410 Bal. Cost of goods sold 10-Apr $ 820 20-Apr $ 550 Bal. $ 6,410 Bal. $ 2,170 Bal. $ 75 Bal. $ 1,370

Trial Balance Debit Credit 1,632 945 4,558 Crane Pro Shop Account Names Cash Accounts Receivable Inventory Accounts Payable Common Stock Sales revenue Sales Returns & Allowances Cost of goods sold Totals 6,410 2,170 75 1,370 8,580 8,580

Crane Pro Shop Income Statement For the Month Ended April 30, 2022 Revenues Sales revenue Less Sales Returns & Allowances Net Sales Revenue Less Cost of goods sold Gross Profit 2,170 75 2,095 1,370 725