Part 1

Part 2:

Purchasing and Sales Activities in a Periodic System Using the list of accounts from the Waren Sports Supply company chart of accounts, journalize the following transactions: Cost of Goods Sold/Gross Profit Accounts: A. Ordered and received 30 basketballs @ \$25.00 each and 10 backboards @ \$83.00 from Velocity Sporting Goods, terms 2/10, Net 30; freight bill received from carrier and paid upon delivery: $300. Special Adjusting Entry for Cost of Goods Sold/Merchandise Inventory: Before year-end adjustments, the Inventory and Cost of Goods Sold/Gross Profit Accounts had the following balances: A Physical count of inventory at year-end shows of inventory on hand. 93,500 J. Prepare the adjusting entry to establish the correct inventory balance, cost of goods sold amount, and close other supplemental accounts from list above. 44