In: Accounting
ABC INC uses the periodic inventory system. ABC had the following translations related to merchandise during the month of January 2020.
Jan1 | Purchased on account 1000 copies of accounting books for resale for $100 per copy terms were 1/10, n/30 |
2 | Paid $5 per copy cash for shipping on Jan 1st purchase |
5 | Returned 100 copies of accounting books |
9 | paid for merchandise purchased on jan 1 |
17 | sold 500 copies on account for $160 per copy, terms were 1/10, n/30 |
25 | Customer returned 50 copies of accounting books sold on jan 17 |
30 | Received payment from customer for accounting books sold on jan 17 |
1. Prepare journal entires to record above transactions
2. On Jan 31st the company finds that the ending balance of inventory is $50,000 (Assume that the beginning balance of inventory was $30,000). Prepare a T account for inventory. What is the cost of goods sold for January