Essay
On June 1, Grill Master Ltd. had an inventory of 10 barbeques at a cost of $440 each. Grill Master uses a periodic inventory system. During the month of June the following transactions occurred:Jun 3 Purchased 25 barbeques at a cost of $440 each from BBQ King Ltd., terms n/30.5 Paid $200 freight for the barbeques purchased on June 3.6 Sold 12 barbeques to Outdoor Grill for $760 each, terms 2/10, n/30.7 Received credit from BBQ King for the return of two defective barbeques.13 Issued a credit to Outdoor Grill for the return of one defective barbeque.16 Received a credit from BBQ King for the defective barbeque returned by Outdoor Grill.19 Purchased 10 barbeques from Backyard Barbecues at a cost of $440 each, terms 2/10, n/30.20 Paid freight of $200 on the June 19 purchase.On June 30, Grill Masters ending inventory was $6,440Instructions
a. Prepare journal entries to record the above transactions.
b. Calculate the cost of goods sold for June.
Correct Answer:
Verified
Correct Answer:
Verified
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