Year-End Entries to Update Inventory Under Periodic System
the Accountant

question 60

Essay

Year-end entries to update inventory under periodic system
The accountant for the Oswego chain of retail stores is getting ready to prepare the 2020 year-end inventory entries for its periodic inventory system. Her assistant has provided the following information:



\begin{array}{llcc} \text { Beginning inventory } &\$88,000 \\ \text { Imentory purchase during year } &900,000\\ \text { Ending inventory} &62,000\\end{array}
Instructions
Record the journal entry(ies) that Oswego's accountant would prepare to bring the inventory and cost of goods sold up to date for 2020.

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Definitions:

General Ledger

The General Ledger is a complete record of all financial transactions over the life of a company, organized by accounts.

Sales Journal

is a specialized accounting journal used to record all sales transactions of a business on credit.

Merchandise

Goods or products that are bought and sold by businesses.

Credit Sales

Sales made by a business where payment is delayed as per agreed-upon terms, typically recorded as accounts receivable.