For these transactions, show what

Key

will report for inventory, revenues, and expenses on its financial statements. Report gross profit on the appropriate statement.

Determine what the company will report on the balance sheet. We want to report the ending balance of inventory after both the purchase and the cost of goods sold has been posted. Check your calculation carefully using the journal entries you prepared above

Cozelle, Inc., purchased inventory costing $125,000 and sold 80% of the goods for $200,000. All purchases and sales were on account. Cozelle later collected 25% of the accounts receivable. Assume that sales retums are nonexistent. 1. Journalize these transactions for Cozelle, which uses the perpetual inventory system 2. For these transactions, show what Cozelle will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement Journal Credit Debit Accounts Cash 50,000 50,000 Accounts Receivable 2. or these transactions, sh what Cozele wi report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement. (lf a box is not used in the table leave the box empty; do not enter a label or enter a zero.) Determine what the company will report o the balance sheet n Balance Sheet Assets Current assets: Inventory