Berring Sales Uses the Average- Cost Method

question 73

Multiple Choice

Berring Sales uses the average- cost method. The partially completed inventory record for January appears below. On 14 January, the company sold 10 units. On 29 January, the company sold 50 units. Complete the inventory record and calculate the Inventory balance at the end of January. (Please round to the nearest whole dollar.)

• A)$228
• B)$141
• C)$249
• D)$135

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Definitions:

Adjusting Journal Entry

An entry made in a journal at the end of an accounting period to allocate income and expenditure to the appropriate period.

Balance Sheet Approach

A method of estimating a company's value by focusing on its balance sheet, particularly its assets and liabilities.

Allowance for Doubtful Accounts

A contra-asset account representing the estimated portion of accounts receivable that may not be collected.

Balance Sheet Approach

A method of estimating allowances based on the balances of particular accounts, focusing on the assets and liabilities reported on the balance sheet.