Accounting records for Josh’s Shopping Bags yield the following data for the year ended May 31, 2012:
Inventory, May 31, 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000
Purchases of inventory (on account). . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000
Sales of inventory – 81% on account; 19% for cash (cost $38,000). . . 76,000
Inventory, May 31, 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?
Requirements
1. Journalize the inventory transactions for the company using the data given.
2. Report ending inventory on the balance sheet, and sales, cost of goods sold, and gross profit on the income statement.