At the End of Last Year, Baron's Bazaar Had Merchandise

question 18

Essay

At the end of last year, Baron's Bazaar had merchandise costing $381,000 in inventory.
During January of the current year, the company purchased merchandise costing $133,500, and sold merchandise which it had purchased at a total cost of $109,300.
a. Assume that Baron's Bazaar uses a perpetual inventory system.
(1) The total amount debited to the Inventory account during January was:
$________________
(2) The balance in the Inventory account at January 31 was:
$________________
(3) The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:
$________________
b. Assume that Baron's Bazaar uses a periodic inventory system and takes a physical inventory only at year-end (December 31). (Note: $0 may be an appropriate answer to one or more of the following questions.)
(1) The total amount debited to the Inventory account during January was:
$________________
(2) The balance in the Inventory account at January 31 was:
$________________
(3) The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:
$________________

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Definitions:

Market

A place or mechanism where buyers and sellers meet to engage in exchange of goods and services.

Atmospherics

The physical elements of a store or business environment designed to influence a consumer's mood and behavior.

Emotional Manipulation

The use of psychological tactics to influence others' feelings and behaviors for one's own advantage, often undermining the individual's choices or well-being.

Scented Candles

Products made of wax and fragrance oils designed to release pleasant aromas when lit, often used for ambiance, relaxation, or aromatherapy.