Jolly Rancher Company Uses the Periodic Inventory System

question 128

Essay

Jolly Rancher Company uses the periodic inventory system.
Required:
Prepare the journal entries to record the following transactions. Omit explanations.
1. Purchased $500,000 of inventory on account.
2. Sales on account were $840,000.
3. Closed out beginning inventory of $110,000.
4. The ending inventory based on a physical count was $117,000.
5. Closed out purchases account.

---

Definitions:

Variance

A measure of the dispersion or spread of a set of data points, indicating how far each data point lies from the mean.

Consistency

refers to the property of an estimator in which, as the sample size increases, it converges in probability to the parameter it estimates.

Interval Estimator

An interval estimator provides a range of values, defined by an upper and lower bound, that is likely to contain the population parameter of interest.

Sample Mean

The average of a subset of numbers from a larger set, representing the central tendency of that subset.