E 8-3 Askew Company uses a periodic inventory system. The June 30, 2011, year-end trial balance for the company contained the following information:

E 8-3 Askew Company uses a periodic inventory system. The June 30, 2011, year-end trial balance for the company contained the following information:

ANSWER KEY E 8-3 Determining cost of goods sold; periodic inventory system

Chapter8: Inventories: Measurement

E 8-3 Determining cost of goods sold; periodic inventory system. Askew Company uses a periodic inventory system. The June 30, 2011, year-end trial balance for the company contained the following information:

Account Debit Credit Merchandise inventory, 7/1/10 32,000 Sales 380,000 Sales returns 12,000 Purchases 240,000 Purchase discounts 6,000 Purchase returns 10,000 Freight-in 17,000

In addition, you determine that the June 30, 2011, inventory balance is $40,000.

Required:

1. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2011.

2. Prepare the year-end adjusting entry to record cost of goods sold.

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