Use the reconciliation approach to determine cash paid for inventory for the Ji Company. Assume all inventory is bought on account and the Accounts Payable account is used only for inventory. Beginning and ending balances of merchandise inventory were $12,400 and $18,800 respectively. Beginning and ending balances of Accounts Payable were $4,000 and $2,800 respectively. Sales revenue amounted to $137,024 and cost of goods sold equaled $83,808.

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The Answer of Use the reconciliation approach to determine cash paid for inventory for the Ji Company. Assume all inventory is bought on account and the Accounts Payable account is used only for inventory. Beginning and ending balances of merchandise inventory were $12,400 and $18,800 respectively. Beginning and ending balances of Accounts Payable were $4,000 and $2,800 respectively. Sales revenue amounted to $137,024 and cost of goods sold equaled $83,808.

Use the Reconciliation Approach to Determine Cash Paid for Inventory