Periodic inventory system rose emporium uses a

Periodic inventory system
Rose Emporium uses a periodic inventory system. At the end of 2007, the accounting
records include the following information:
Inventory, December 31, 2006 $ 6,700
Inventory, December 31, 2007 $ 4,300
Net sales $105,000
Purchases $ 60,000
Compute the following for 2007:
a) Cost of goods sold.
b) Gross profit. $ 42,600
Magenta Corporation uses a periodic inventory system. During the current year, the
company purchased merchandise at a cost of $245,000. You are to compute the cost of
goods sold under each of the following alternative assumptions:
Cost of Goods
Sold
A No beginning inventory; ending inventory $18,000 ............ $227,000
B Beginning inventory $15,000; no ending inventory ............ $260,000
C Beginning inventory $12,000; ending inventory, $9,000 .... $248,000
D Beginning inventory $11,000; ending inventory $17,000... $239,000
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Perpetual Inventory
Record the following transactions in the company’s general journal
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