Question

Home Hardware reported beginning inventory of 25 shovels, for a total cost of $250. The company had the following transactions during the month:

Jan. 2 Sold 6 shovels on account at a selling price of $15 per unit.

16 Sold 11 shovels on account at a selling price of $15 per unit.

18 Bought 9 shovels on account at a cost of $10 per unit.

19 Sold 11 shovels on account at a selling price of $15 per unit.

24 Bought 11 shovels on account at a cost of $10 per unit.

31 Counted inventory and determined that 16 units were on hand.

1. Hepare the journal entries that would be recorded using a periodic inventory system. (It no entry is required tor a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Solution:

No	Date	General Journal	Debit	Credit
1	Jan 1	Accounts Receivable	$90
		Sales Revenue		$90
2	Jan 16	Accounts Receivable	$165
		Sales Revenue		$165
3	Jan 18	Purchases	$90
		Accounts Payable		$90
4	Jan 19	Accounts Receivable	$165
		Sales Revenue		$165
5	Jan 24	Purchases	$110
		Accounts Payable		$110
6	Jan 31	Cost Of Goods Sold	$450
		Inventory		$250
		Purchases		$200
7	Jan 31	Inventory	$160
		Cost of Goods Sold		$160