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

تمرين 57

Periodic Inventory Systems
Boston Bait Shop uses a periodic inventory system.t December 31, Year 2, the accounting records include the following information:

A complete physical inventory taken at December 31, Year 2, indicates merchandise costing $3,000 remains in stock.
a.ow were the amounts of beginning and ending inventory determined
b.ompute the amount of the cost of goods sold in Year 2.
c.repare 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.repare a partial income statement showing the shop's gross profit for the year.
e.escribe why a company such as Boston Bait Shop would use a periodic inventory system rather than a perpetual inventory system.