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1 February, 20:55

Marin Company uses a perpetual inventory system. Its beginning inventory consists of 65 units that cost $44 each. During June, (1) the company purchased 195 units at $44 each, (2) returned 8 units for credit, and (3) sold 163 units at $65 each.

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  1. 1 February, 21:17
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    Dr. Cr.

    (1)

    The company purchased

    195 units at $44 each

    Inventory (195 x 44) 8,580

    Account Payable / Cash 8,580

    (2)

    Returned 8 units

    for credit

    Account Payable / Cash 352

    Inventory (8 x 44) 352

    (3)

    Sold 163 units

    at $65 each.

    Account receivable / Cash 10,595

    Sales (163 x 65) 10,595

    Cost of Goods sold 7,172

    Inventory 7,172

    Inventory Account: Dr. Cr. Balance

    Opening Balance (65 x $44) $2,860

    (1) Purchase $8,580 $11,440

    (2) Purchase Return $352 $11,088

    (3) Sale $7,172 $3,916

    Inventory Closing Value is $3,916.
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