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Posted: January 18th, 2023
Journalize these transactions for Kilgo
(Learning Objective 1: Accounting for inventory transactions) Riley Kilgo, Inc., purchased inventory costing $100,000 and sold 80% of the goods for $240,000. All purchases and sales were on account. Kilgo later collected 20% of the accounts receivable.1. Journalize these transactions for Kilgo, which uses the perpetual inventory system.2. For these transactions, show what Kilgo will report for inventory, revenues, and expenses on its financial statements. Report gross profit on the appropriate statement.
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