A merchandising company’s ledger on May 31, its fiscal year-end, includes the following accounts that have normal balances (it uses the perpetual inventory system). A physical count of its May 31 year-end inventory reveals that the cost of the merchandise inventory still available is $656. (a) Prepare the entry to record any inventory shrinkage. (b) Prepare the four closing entries as of May 31. Merchandise inventory . $ 756 Sales discounts $ 50 Depreciation expense $400 Z. Zee, Capital . 2,300 Other operating expenses . 300 Salaries expense 600 Z. Zee, Withdrawals 150 Cost of goods sold . 2,100 Sales returns and allowances 250

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
icon
Related questions
icon
Concept explainers
Question

A merchandising company’s ledger on May 31, its fiscal year-end, includes the following accounts that
have normal balances (it uses the perpetual inventory system). A physical count of its May 31 year-end
inventory reveals that the cost of the merchandise inventory still available is $656. (a) Prepare the entry to
record any inventory shrinkage. (b) Prepare the four closing entries as of May 31. Merchandise inventory . $ 756 Sales discounts $ 50 Depreciation expense $400
Z. Zee, Capital . 2,300 Other operating expenses . 300 Salaries expense 600
Z. Zee, Withdrawals 150 Cost of goods sold . 2,100 Sales returns and allowances 250

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning