Accounting and Finance Foundations

Unit 6

Accounting and Finance Foundations Unit 6: Journalizing 503

Journalizing

Chapter 17Chapter 6

Student Assignment

Name: _______________________________________________________________ Date: _________________

17.4.1 Accounting for Inventory

Answer each of the following questions. Use a separate sheet of paper to record your responses.

1. True or false: Businesses that maintain inventory must track the costs of inventory in their
   accounting records.


2. You will update the general journal and post to the general ledger after every purchase and sale
   of inventory if you are using a(n) __ inventory system.


3. A periodic system records __ and sales in a(n) account.


4. You will update the general ledger for inventory transactions at the end of every accounting period
   if you are using a(n) ____ inventory system.


5. Using a periodic inventory system, you create the following entries at the end of the accounting
   period. Fill in the missing account information:

01/31/20YY

Debit Credit

_______________ $98.00

Purchases $98.00

6. Complete the following formula to calculate ending inventory:

Ending Inventory = _____________________ + Purchases during the accounting period – Cost of Goods Sold