Quiz 6_CH 7_Solution

Quiz 6_CH 7_Solution - c. Accounts Payable 1,500 Purchase...

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Name______________________________ Rec Sec ____________ MGA 201: Fall 2008 Quiz #6: Chapter 7 SOLUTION At 1/1/09, Pearson Limited had a $75,000 balance in inventory. During the year, the company had the following transactions: a) Sales of $450,000 (all on account) b) Purchases of $190,000 (all on account) c) Purchase returns of $1,500 (all on account) PART I: Record the events in (a), (b) and (c), assuming the company uses the periodic inventory method. a. Accounts Receivable 450,000 Sales Revenue 450,000 b. Purchases 190,000 Accounts Payable 190,000
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Unformatted text preview: c. Accounts Payable 1,500 Purchase Returns 1,500 PART II: A physical count of inventory on 12/31/09 revealed $63,000 of ending inventory. Prepare the closing entries that are needed to adjust the inventory records and close the related purchase accounts, assuming that the periodic inventory method is used. Purchases Purchase returns Inventory a. 190,00 190,000 1,500 1,500 b. BB 75,000 188,500 263,500 EB 200,500 EB EB 63,000 Purchase returns 1,500 Inventory 188,500 Purchases 190,000 COGS 200,500 Inventory 200,500...
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