Jolly Rancher Company uses the periodic inventory system.
Required:
Prepare the journal entries to record the following transactions. Omit explanations.
1. Purchased $500,000 of inventory on account.
2. Sales on account were $840,000.
3. Closed out beginning inventory of $110,000.
4. The ending inventory based on a physical count was $117,000.
5. Closed out purchases account.

Question

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The Answer of Jolly Rancher Company uses the periodic inventory system.
Required:
Prepare the journal entries to record the following transactions. Omit explanations.
1. Purchased $500,000 of inventory on account.
2. Sales on account were $840,000.
3. Closed out beginning inventory of $110,000.
4. The ending inventory based on a physical count was $117,000.
5. Closed out purchases account.

Jolly Rancher Company Uses the Periodic Inventory System