The following information comes from the records of Telly’s Supply:
Beginning inventory.......$32,000
Inventory purchases.......85,000
Transportation-in..........4,300
An inventory count taken at year-end indicates that inventory with a cost of $50,000 is on hand as of December 31, 2011.
Assume that inventory purchases and transportation-in are both reflected in the inventory account, which shows an ending balance of $52,000. Compute cost of goods sold along with any adjusting entries required at the end of the period.