Beginning inventory for the period was $220,000 Purchases for the period totaled $720,000 and sales were $1,250,000 A physical count of ending inventory revealed inventory of $145,000 (1) Compute cost of goods sold assuming that a periodic system is used and (2) Make the journal entry to record inv...

1 Beginning inventory 220000 Plus Purchases 720000 Cost of goods available for sale 940000 Less End ...

Beginning inventory for the period was $220,000. Purchases for the period totaled $720,000 and sales were $1,250,000.

Question:

Beginning inventory for the period was $220,000. Purchases for the period totaled $720,000 and sales were $1,250,000. A physical count of revealed inventory of $145,000.
(1) Compute cost of goods sold assuming that a periodic system is used and
(2) Make the journal entry to record inventory shrinkage assuming that a perpetual system is used and cost of goods sold according to the system was $710,000.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...