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BE5.4 (LO 2) (Compute missing amounts in determining cost of goods sold.) At the beginning...

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Accounting

image BE5.4 (LO 2) (Compute missing amounts in determining cost of goods sold.) At the beginning of the year, Point Claire Shipping Ltd., a company that has a perpetual inventory system, had $55,000 of inventory. During the year, inventory costing $220,000 was purchased. Of this, $26,000 was returned to the supplier and a 5% discount was taken on the remainder. Freight costs incurred by the company for inventory purchases amounted to $2,700. The cost of goods sold during the year was $218,000. a. Determine the balance in the Inventory account at the end of the year. b. Prepare the adjusting entry that would be required if the inventory count determined that Point Claire Shipping had inventory with a cost of $22,000 at the end of the year

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