Gross Profit Need help ASAP


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Is there enough info to complete this question? I am stumped

6. Determine the journal Entry required to represent gross profit at 50%.
a. Fact Pattern: Accounts Payable GL balance is $100,000 – this balance is correct –
b. Purchases GL balance is $80,000
c. Inventory GL Balance is $20,000

** Please enter your Journal Entry below:
 
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Counterofbeans

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I'm going quickly, as I have much to do, but my initial reaction is one of baffled...

Is this a perpetual or periodic inventory system? Using a "purchase" account suggests periodic system, but I'd like confirmation

What date is that inventory G/L balance as of?

I'm guessing they want you to do something like an inventory rollforward, but I'd say you need more information.
 

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