Question

Marigold Company sells one product. Presented below is information for January for Marigold Company. Jan. 1 4 Inventory Sale Purchase 11 104 units at $5 each 79 units at $8 each 145 units at $6 each 115 units at $9 each 162 units at $6 each 107 units at $10 each 13 20 27 Sale Purchase Sale Marigold uses the FIFO cost flow assumption. All purchases and sales are on account. Assume Marigold uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually)

Answer 1

Ans: Journal Entry

Date	Account title and explanation	Debit($)	Credit($)
Jan 4	Accounts Receivable	632
	Sales Revenue{79*8}		632
	{ to record Cost of Goods Sold}
Jan 11	Purchases {145*6}	870
	Accounts payable		870
	{ to record the purchase}
Jan 13	Accounts Receivable	1,035
	Sales Revenue{115*9}		1,035
	{ to record the cost of Goods Sold}
Jan 20	Purchases{162*6}	972
	Accounts payable		972
	{ to record the purchase}
Jan 27	Accounts receivable	1,070
	Sales Revenue{107*10}		1,070
	{ to record the cost of Goods Sold}