Determining cost of goods sold; periodic inventory system [LO8-1] Askew Company uses a periodic inventory system. The June 30, 2016, year-end trial balance for the company contained the following information:
Account Debit Credit
Merchandise inventory, 7/1/15 32,000
Sales 380,000
Sales returns 12,000
Purchases 240,000
Purchase discounts 6,000
Purchase returns 10,000
Freight-in 17,000
In addition, you determine that the June 30, 2016, inventory balance is $40,000.
Required:
1. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2016.
2. Prepare the year-end adjusting entry to record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)