When goods are returned to supplier by a company using a periodic inventory system

The Hamlet Company uses the periodic inventory system. Information for 2016 is as follows:

Sales; $2,650,000
Beginning Inventory; 680,000
Purchases; 1,200,000
Purchase returns; 12,000
Ending inventory; 740,000

Hamlet's cost of goods sold for 2016 is:
$1,522,000
$1,188,000
$1,140,000
$1,128,000

Symington Corporation uses the periodic inventory system. At December 31, 2016, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count:

Goods held on consignment at Murphy Corporation; $23,000

Merchandise shipped to a customer on 12/30 f.o.b. destination, Merchandise arrived at customer's location on 1/3/17; $12,000

Merchandise shipped to a customer on 12/29 f.o.b. shipping point, Merchandise arrived at customer's location on 1/2/17; $6,000

Merchandise purchased from a supplier, shipped f.o.b. destination on 12/29, in transit at year end; $24,000

Symington's 2016 ending inventory should be:

$320,000

$379,000

$355,000

$332,000

Barrington Company began the year with inventory of $100,000. During the year, the company purchased inventory in the amount of $750,000. Sales revenue for the year totaled $800,000. A physical count determined the cost of inventory at the end of the year to be $90,000. The adjusting entry needed at the end of the year under a periodic inventory system includes a:

-Debit to Cost of Goods Sold for $760,000.
-Debit to Cost of Goods Sold for $850,000.
-Debit to Purchases for $750,000.
-Credit to Cost of Goods Sold for $760,000
-Credit to Cost of Goods Sold for $850,000

The June 30, 2021, year-end trial balance for Askew company contained the following information:

Inventory, 7/1/2020: 33,100D
Sales revenue: 391,000C
Sales returns: 13,100D
Purchases: 251,000D
Purchase discounts: 7,100C
Purchase returns: 11,100C
Freight-in: 19,200D

In addition, you determine that the June 30, 2021, inventory balance is $41,100.

Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2021.

The December 31, 2021, year-end inventory balance of the Raymond Corporation is $212,000. You have been asked to review the following transactions to determine if they have been correctly recorded.

1. Goods shipped to Raymond f.o.b. destination on December 26, 2021, were received on January 2, 2022. The invoice cost of $31,000 is included in the preliminary inventory balance.

2. At year-end, Raymond held $15,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance.

3. On December 29, merchandise costing $6,100 was shipped to a customer f.o.b. shipping point and arrived at the customer's location on January 3, 2022. The merchandise is not included in the preliminary inventory balance.

4. At year-end, Raymond had merchandise costing $16,000 on consignment with the Joclyn Corporation. The merchandise is not included in the preliminary inventory balance.

Determine the correct inventory amount to be reported in Raymond's 2021 balance sheet.

The Hamlet Company uses the periodic inventory system. Information for the current year is as follows:
Sales $2,650,000
Beginning inventory 680,000
Purchases 1,200,000
Purchase returns 12,000
Ending inventory 740,000
Hamlet's cost of goods sold for the current year is:

a) $1,128,000
b) $1,188,000
c) $1,140,000
d) $1,522,000

a) $1,128,000

Reason:
Net purchases=Purchases-Purchases returns
=(1,200,000-12,000)=$1,188,000

Cost of goods sold=Beginning inventory+Net purchases-Ending inventory
=680,000+1,188,000-740,000
=$1,128,000

Symington Corporation uses the periodic inventory system. At December 31, 20X1, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count:

-Goods held on consignment at Murphy Corporation $23,000
-Merchandise shipped to a customer on 12/30/20X1 f.o.b. destination(merchandise arrived at customer's location on 1/3/20X2) 12,000
-Merchandise shipped to a customer on 12/29/20X1 f.o.b. shipping point(merchandise arrived at customer's location on 1/2/20X2) 6,000
-Merchandise purchased from a supplier, shipped f.o.b. destinationon 12/29/20X1, in transit at year-end 24,000

Symington's 20X1 ending inventory should be:

a) $320,000
b) $332,000
c) $379,000
d) $355,000

How does return of merchandise affect periodic inventory system?

When goods are sold by a company using a periodic inventory system?

When using a periodic inventory system purchase returns and allowances and transportation in are?

What is periodic inventory system example?