Account

Debit
Debit

Credit
Credit

Merchandise inventory, 7/1/15

32,000


Sales

380,000
Sales returns

12,000


Purchases

240,000


Purchase discounts

6,000
Purchase returns

1
Exercise 8-3 Determining cost of goods sold; periodic inventory system [LO8-1]

Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information:


Account

Debit
Debit

Credit
Credit

Merchandise inventory, 7/1/15

32,000


Sales

380,000
Sales returns

12,000


Purchases

240,000


Purchase discounts

6,000
Purchase returns

10,000
Freight-in

17,000




In addition, you determine that the June 30, 2016, inventory balance is $40,000.

Required:

1.
Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2016.


2.
Prepare the year-end adjusting entry to record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)