Bermuda Beach Boutique Company uses a perpetual inventory system. Beginning Inventory is 2,500 t-shirts at a cost $2.50 per shirt. During the year Bermuda Beach Boutique purchased the following shirts:
All purchases and sales are on account.
Instructions
a. Calculate the cost of goods sold and ending inventory using average.
b. Prepare journal entries to record the February 18 and the August 29 sales. All sales and purchases are made in cash only.

Question

Bermuda Beach Boutique Company uses a perpetual inventory system. Beginning Inventory is 2,500 t-shirts at a cost $2.50 per shirt. During the year Bermuda Beach Boutique purchased the following shirts:
  All purchases and sales are on account.
Instructions 
a. Calculate the cost of goods sold and ending inventory using average.
b. Prepare journal entries to record the February 18 and the August 29 sales. All sales and purchases are made in cash only.

Quizplus · Accepted Answer

The Answer of Bermuda Beach Boutique Company uses a perpetual inventory system. Beginning Inventory is 2,500 t-shirts at a cost $2.50 per shirt. During the year Bermuda Beach Boutique purchased the following shirts:
  All purchases and sales are on account.
Instructions 
a. Calculate the cost of goods sold and ending inventory using average.
b. Prepare journal entries to record the February 18 and the August 29 sales. All sales and purchases are made in cash only.

Bermuda Beach Boutique Company Uses a Perpetual Inventory System