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.

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

eTextbook and Media

List of Accounts

Compute gross profit using the periodic system.

Gross profit

$enter Gross profit in dollars

Assume Blossom uses a perpetual system. Prepare all necessary journal entries. (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

Compute gross profit using the perpetual system.

Gross profit

$enter gross profit in dollars

Answer 1

Part A

Date	Accounts and explanation	Debit	Credit
Jan. 4	Accounts Receivable	784
	Sales Revenue (98 X $8)		784
Jan. 11	Purchases ($136 X $6)	816
	Accounts Payable		816
Jan. 13	Accounts Receivable	927
	Sales Revenue (103 X $9)		927
Jan. 20	Purchases ($169 X $7)	1183
	Accounts Payable		1183
Jan. 27	Accounts Receivable	1188
	Sales Revenue (108 X $11)		1188
Jan. 31	Inventory ($7 X 119)	833
	Cost of Goods Sold	1781
	Purchases ($816 + $1183)		1999
	Inventory (123 X $5)		615

Part B

Sales revenue (784+927+1188)	2899
Cost of goods sold	1781
Gross profit	$1118

Part C

Date	Accounts and explanation	Debit	Credit
Jan. 4	Accounts Receivable	784
	Sales Revenue (98 X $8)		784
	Cost of Goods Sold	490
	Inventory (98 X $5)		490
Jan. 11	Inventory ($136 X $6)	816
	Accounts Payable		816
Jan. 13	Accounts Receivable	927
	Sales Revenue (103 X $9)		927
	Cost of Goods Sold	593
	Inventory (25*5)+(78*6)		593
Jan. 20	Inventory ($169 X $7)	1183
	Accounts Payable		1183
Jan. 27	Accounts Receivable	1188
	Sales Revenue (108 X $11)		1188
	Cost of Goods Sold	698
	Inventory (58*6)+(50*7)		698

Part D

Sales revenue (784+927+1188)	2899
Cost of goods sold (490+593+698)	1781
Gross profit	$1118