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  • Boston Bait Shop Uses A Periodic Inventory System at December

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    Boston Bait Shop uses a periodic inventory system where inventory is counted at the end of each period. At December 31, Year 2, inventory was $3,000 based on a physical count, with net sales of $79,600 and purchases of $30,200 for the year. The cost of goods sold and ending inventory amounts will be used to prepare closing entries and a partial income statement for Year 2. A periodic system is used instead of perpetual as it is less complex for a small shop like Boston Bait.

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    Boston Bait Shop uses a periodic inventory system where inventory is counted at the end of each period. At December 31, Year 2, inventory was $3,000 based on a physical count, with net sales of $79,600 and purchases of $30,200 for the year. The cost of goods sold and ending inventory amounts will be used to prepare closing entries and a partial income statement for Year 2. A periodic system is used instead of perpetual as it is less complex for a small shop like Boston Bait.

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    © All Rights Reserved
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    53 views1 page

    Boston Bait Shop Uses A Periodic Inventory System at December

    Uploaded by

    trilocksp Singh
    Boston Bait Shop uses a periodic inventory system where inventory is counted at the end of each period. At December 31, Year 2, inventory was $3,000 based on a physical count, with net sales of $79,600 and purchases of $30,200 for the year. The cost of goods sold and ending inventory amounts will be used to prepare closing entries and a partial income statement for Year 2. A periodic system is used instead of perpetual as it is less complex for a small shop like Boston Bait.

    Copyright:

    © All Rights Reserved
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    Boston Bait Shop uses a periodic inventory system At

    December
    Boston Bait Shop uses a periodic inventory system. At December 31, Year 2, the accounting
    records include the following information:Inventory (as of December 31, Year 1) . . . . . . . . . . . . .
    . . . . . . . . . . . . . . . . . . $ 2,800Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    . . . . . . . . . . 79,600Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    . 30,200A complete physical inventory taken at December 31, Year 2, indicates merchandise
    costing $3,000 remains in stock.a. How were the amounts of beginning and ending inventory
    determined?b. Compute the amount of the cost of goods sold in Year 2.c. Prepare two closing
    entries at December 31, Year 2: the first to create a Cost of Goods Sold account with the
    appropriate balance and the second to bring the Inventory account up-to-date.d. Prepare a
    partial income statement showing the shop’s gross profit for the year.e. Describe why a
    company such as Boston Bait Shop would use a periodic inventory system rather than a
    perpetual inventory system.View Solution:
    Boston Bait Shop uses a periodic inventory system At December
    SOLUTION-- http://solutiondone.online/downloads/boston-bait-shop-uses-a-periodic-inventory-
    system-at-december/

    Unlock answers here solutiondone.online


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