Question

ABC compeny uses the periodic inventory system. ABC has the following account balances in their unadjusted trial balance.

PROBLEM #4-9 points inventory system. ABC has the following account al balance (partial). A count of the inventory at the end oesin uses the periodic ABC company their u 152.000. Please record the adjusting entry related to endi nost of goods sold at the end of the year ended 12/31/17. e year record the adjusting entry related to inventory and 35 ooo ABC Company Unadjusted Trial Balance (partial) 12/31/17 Account Debit Credit 135,000 210,000380,000 Inventory (1/1) Purchases Freight-In Purchase returns Purchase allowances Purchase discounts 35,000 25,000 10,000 3.50038 12/51/? C065 Invent 1,000 ??? In venta 35,000 25000 210 000 351000 io 1000 3500 34 1500 81500

Answer 1

Adjusting entry to record the inventory and cost of goods sold at the end:

Date	Account title & Explanation	Debit	Credit
31/12/2017	Cost of goods sold**	$       189,500
	Inventory		$       189,500
	(To record the transfer of inventory to cost of goods sold)

Debit and Credit rule:

Inventory is asset item and is reduced so credited. Cost of goods sold is debit item and debited to increase the same.

^**

Details	Amount
Total of debits	$       380,000
Less: Total of credits	$         38,500
Inventory available	$       341,500
Less: Physical value of inventory at the end	$       152,000
Cost of goods sold	$       189,500