Question - DOT ice cream, Inc., purchased inventory for its ice cream shop in August 2009 for $55,000 cash to sell in August and September. The company sold inventory that cost 32,000 in August and the remainder in September. What is the cost of goods sold for August 2009 and the cost of goods sold for September 20009 if DOT uses GAAP? What is the cost of goods sold for each month if DOT uses cash basis accounting?
For cost of goods sold with a zero balance, make sure to enter zero in the appropriate cell.