Record the entry of cost of goods sold


Response to the following problem:

John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013:

1. John's purchased merchandise on account for $6,300. Freight charges of $950 were paid in cash.

2. Johns returned some of the merchandise purchased in (1). The cost of the merchandise was $1,250 and Johns account was credited by the supplier.

3. Merchandise costing $3,450 was sold for $6,500 in cash.

Required:

Prepare the necessary journal entries to record these transactions

1.Record the purchased merchandise on account for $6,300.

2.Record the payment of freight charges for $950. .

3.Record the purchase return for $1,250. 

4.Record the merchandise sold for $6,500.

5.Record the entry of cost of goods sold.

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Cost Accounting: Record the entry of cost of goods sold
Reference No:- TGS02077473

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