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During fiscal 2016, Caleres Inc. (formerly Brown Shoe Company), reported cost of goods sold of $1,517.4 million. Inventory at the start of the year was $546.7 million and at the end of the year was $585.8 million. Which of the following describes the closing entry that the company will make for these accounts?
A. Debit Inventory $39.1 million.
B. Credit Inventory $585.8 million.
C. Credit Cost of goods sold $1,517.4 million.
D. Both A and C.
E. None of the above.

Respuesta :

Answer:

Credit Cost of goods sold $1,517.4 million

Explanation:

given data

cost of goods sold = $1,517.4 million

Inventory at the start of the year = $546.7 million

Inventory at the end of the year = $585.8 million

solution

Journal Entry will as

Income Summary               DR  $1,517.4 million

Cost of goods sold            CR                                          $1,517.4 million

so correct option is C. Credit Cost of goods sold $1,517.4 million.

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