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Home Hardware reported beginning inventory of 30 shovels, for a total cost of $270. The company had the following transactions during the month:

1.Sold 5 shovels on account at a selling price of $14 per unit. Record the transaction.

2.Sold 10 shovels on account at a selling price of $14 per unit. Record the transaction.

3.Bought 8 shovels on account at a cost of $9 per unit. Record the transaction.

4.Sold 10 shovels on account at a selling price of $14 per unit. Record the transaction.

5.Bought 10 shovels on account at a cost of $9 per unit. Record the transaction.

6.Record a journal entry that shows all goods initially on hand at the beginning of the period (in the Inventory account) and all goods bought during the period (in the purchases account) as having been sold by the end of the period.

7.Record a journal entry that adjusts the accounting records to show that 22 units of inventory actually are still on hand (and should be recorded in the Inventory account) at the end of the period.

Prepare the journal entries that would be recorded using a periodic inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Date	Account	Debit	credit
1	Accounts receivable	70
	sales revenue		70
	[being shovels sold 5*14]
2	Accounts receivable	140
	sales revenue		140
	[being shovels sold 5*14]
3	purchase	72
	Accounts payable [8*9]		72
4	Accounts receivable	140
	sales revenue		140
5	Purchase	90
	Accounts payable		90
6	cost of goods sold	432
	Inventory		270
	purchase [72+90]		162
7	Inventory	198
	cost of goods sold   [22*9]		198