Year-End Entries to Update Inventory Accounts
Omaha Corporation Uses FIFO

Essay

Year-end entries to update inventory accounts
Omaha Corporation uses FIFO and a periodic inventory system. You have been provided with the following information relating to the company's inventory for the year ended December 2020:
$\begin{array}{llcc} \text { Beginning inventory Jan 1 } & \$24,500\\ \text { Ending inventory Dec 31 } &109,800\\ \text { Total purchases recorded during 2020} &130,000\\\end{array}$
Instructions
Record the journal entry (entries) that are required to bring Omaha's inventory accounts and cost of goods sold up to date for 2020.