Assuming the Use of the Periodic Inventory System,use the Data

question 160

Essay

Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the goods available for sale for the year ended December 31,2010.
$\begin{array}{llr} \text {Merchandise Inventory, December 31, 2009 } &\$2,830\\ \text {Merchandise Inventory, December 31, 2010 } &3,482\\ \text { Cost of Goods Sold } &18,048\end{array}$

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Definitions:

Trial Balance Columns

These are the two columns in a trial balance where all the debit balances are listed on one side and all the credit balances on the other, helping to ensure that total debits equal total credits.

Formal Financial Statements

Structured reports prepared by a company, usually annually or quarterly, that present its financial performance and position.

Worksheet

A document or file used for organizing and planning finances, calculations, or data analysis, often used in accounting and Excel.

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and withdrawal accounts.