Askew Company uses a periodic inventory system. The June 30, 2011, year-end trial balance for the company contained the following information:
Account Debit Credit
Merchandise inventory, 7/1/10 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, 2011, inventory balance $40,000.
1. Calculate the cost of goods sold for the Askew Company for year ending June 30, 2011.
2. Prepare the year-end adjusting entry to record cost of goods sold.