Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 44

Perpetual Inventory Systems
Ranns Supply uses a perpetual inventory system.n January 1, its inventory account had a begin­ning balance of $6,450,000.anns engaged in the following transactions during the year:
1.urchased merchandise inventory for $9,500,000.
2.enerated net sales of $26,000,000.
3.ecorded inventory shrinkage of $10,000 after taking a physical inventory at year-end.
4.eported gross profit for the year of $15,000,000 in its income statement.
a.t what amount was Cost of Goods Sold reported in the company's year-end income statement
b.t what amount was Merchandise Inventory reported in the company's year-end balance sheet
c.mmediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold account What was the balance of the Merchandise Inventory account