Refer to the Thorson Tackle Shop data in Exercise 6-6. Assume that Thorson is using a periodic inventory system. Inventory on hand at December 31, 2014, was $38,000, based on the physical count.
In Exercise 6-6
Thorson Tackle Shop's accounting records yield the following data for the year ended December 31, 2014.
Inventory: January 1, 2014 ......................................................... $ 24,000
Purchases of inventory (on account) .......................................... 147,000
Sales of inventory-70 percent on account,
30 percent for cash (cost $133,000) ........................................... 225,000
Inventory at FIFO cost December 31, 2014.............................. ?
Required
1. Journalize Thorson Tackle Shop's inventory transactions for the year in the periodic system.
2. Report ending inventory, sales, cost of goods sold, and gross margin on the appropriate financial statement. How do these amounts compare to the same amounts in the perpetual inventory system calculated in Exercise 6-6, Requirement 2?