In: Accounting
In a periodic inventory system.
My Inventory ( All purchases is 72,700). I have to make adjusting inventory March 31, 15000
how will I enter in general journal
Total Purchase | 72,700 | |||
Ending Inventory | (15,000) | |||
Cost of Goods Sold | 57,700 | |||
Adjusting Entry would be: | ||||
Date | Accounts Title and Explanation | Debit | Credit | |
Mar-31 | Cost of Goods sold | 57,700 | ||
Inventory | 15,000 | |||
Purchase | 72,700 | |||
(To record cost of goods sold and ending Inventory) | ||||
Note: At the time of purchase following entry was passed: | ||||
Purchase | 72,700 | |||
Accounts Payable | 72,700 | |||
(To record purchase) | ||||