Oriole Company uses a perpetual inventory system. Its beginning inventory consis

Question

Oriole Company uses a perpetual inventory system. Its beginning inventory consists of 98 units that cost $66 each. During June, (1) the company purchased 293 units at $66 each, (2) returned 12 units for credit, and (3) sold 244 units at $98 each. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) Inventory Debit Credit 19338 Accounts Payable 19338 unts Payable 792 Inventory 792 unts Receivable 23912 Sales Revenue 23912 To record sales) Cost of Goods Sold Inventory (To record cost of goods sold)

Explanation / Answer

Cost of goods sold (244*66) 16,104

Inventory 16,104

As the number of units sold are 244 and cost in the beginning as well as of purchased units is $66 per unit, so both are multiplied to get the cost of goods sold

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