Regarding Inventory and its journal entries

[kasujichan]

Hi im an accounting student, i was given this question whereby a trial balance was given to me,
the following information was given to me, pertaining to inventories in the trial balance.

Inventory 31,200 DR
Purchase 84,400 DR

Then a year end stock take concluded that the inventory balance was 18,300.

From my understanding ( I may be wrong ) I should,

Credit Purchases $84,400 debit inventory $84,400
Credit inventory $97,300 debit Cost of Sales $97,300

Can anyone enlighten me please!

Thanks!

 

[DTA93433]

Yup, that will work.