Question

Blossom Company sells one product. Presented below is information for January for Blossom Company.

Jan. 1		Inventory		123	units at $5 each
4		Sale		98	units at $8 each
11		Purchase		136	units at $6 each
13		Sale		103	units at $9 each
20		Purchase		169	units at $7 each
27		Sale		108	units at $11 each

Blossom uses the FIFO cost flow assumption. All purchases and sales are on account.

(a)

Assume Blossom uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 119 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance Oct1	123	5	615	123	5	615
Purchasse
11-Jan	136	6	816	136	6	816
20-Jan	169	7	1183	50	7	350	119	7	833
TOTAL	428		2614	309		1781	119		833
Journal entries
S.no.	Accounts title and xplanations		Debit $	Credit $
04-Jan	Accounts receivable			784
	Sales revenue (98*8)				784
11-Jan	Purchase				816
	Accounts payable (136*6)			816
13-Jan	Accounts receivable			927
	Sales revenue (103*9)				927
20-Jan	Purchase				1183
	Accounts payable (169*7)			1183
27-Jan	Accounts receivable			1188
	Sales revenue (108*11)			1188
31-Jan	Inventory (Ending)			833
	Cost of good ssold			1781
	Purchase					1999
	Inventory (Beginning)				615
	(for adjusting the cost of goods sold)