Sheffield Company sells one product. Presented below is information for January for Sheffield Company. Jan. 1 Inventory 117 units at $5 each 4 Sale 94 units at $8 each 11 Purchase 153 units at $7 each 13 Sale 123 units at $9 each 20 Purchase 154 units at $7 each 27 Sale 90 units at $11 each Sheffield uses the FIFO cost flow assumption. All purchases and sales are on account. Correct answer iconYour answer is correct. Assume Sheffield 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 117 units. (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.)

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letmeanswer letmeanswer · Answer 1 · 2020-03-30T10:14:55+02:00

Solution:

Jan. 4 Accounts Receivable..................................................752

Sales Revenue (94 X $8)................................752

Jan. 11 Purchases ($153 X $7)..........................................1071

Accounts Payable...........................................1071

Jan. 13 Accounts Receivable..................................................861

Sales Revenue (123 X $9).........................861

Jan. 20 Purchases (154 X $7).................................................1,078

Accounts Payable...........................................1,078

Jan. 27 Accounts Receivable..................................................990

Sales Revenue (90 X 11)..............................990

Jan 11 Inventory ($7 X 117)..................................................819

Cost of Goods Sold....................................................816

Purchases ($752 + $1071).............................1,823

Inventory (117 X $5)......................................585

*($585 + $1,823 – $819)

Sales Revenue ($752 + $861 + $990)...............................................$2,603

Cost of goods sold................................................................................816

Gross profit..........................................................................................$1787