I wish i could post the answers i have already. I\'m just looking for cost of go
ID: 2431021 • Letter: I
Question
I wish i could post the answers i have already. I'm just looking for cost of goods sold in the closing entries. It's not 85,900. I tried that
Exercise 213
Bush Company had the following account balances at year-end: cost of goods sold $85,000; inventory $15,000; operating expenses $29,000; sales revenue $135,000; sales discounts $1,300; and sales returns and allowances $2,600. A physical count of inventory determines that inventory on hand is $14,100.
Account Titles and Explanation
Debit
Credit
LINK TO TEXT
Account Titles and Explanation
Debit
Credit
(To close credit balance accounts.)
(To close accounts with debit balances.)
(To transfer net income to capital.)
I wish i could post the answers i have already. I'm just looking for cost of goods sold in the closing entries. It's not 85,900. I tried that
Exercise 213
Bush Company had the following account balances at year-end: cost of goods sold $85,000; inventory $15,000; operating expenses $29,000; sales revenue $135,000; sales discounts $1,300; and sales returns and allowances $2,600. A physical count of inventory determines that inventory on hand is $14,100.
Explanation / Answer
$ Ending inventory 15,000 Less: Ending inventpry as per physical count (14,100) Differences to be adjusted against cost of goods sold 900 Jounal entry Account Titles and Explanation Debit $ Credit $ 1 Cost of goods sold 900 Inventory 900 2 Closing entry; Cost of goods sold 85,900 Operating expenses 29,000 Sales Discounts 1,300 Sales returns and allowances 2,600 Gross income ( Balancing figure ) 16,200 Sales revenue 135,000