8:36 12. The estimated cost of the inventory soldthis year and expected to be returned bycustomers next year is $5,900.Open T accounts and enter the balances for theabove accounts. Make appropriate adjustmentsto the T accounts.Answer |E 14-11A Journalize Adjusting Entry forInventory Shrinkage: PerpetualInventory System(LO5) On December 31, Anup Enterprisescompleted a physical count of its inventory.Although the merchandise inventory accountshows a balance of $350,000, the physicalcount comes to $325,000. Prepare theappropriate adjusting entry under the perpetualinventory system.Series A ProblemsP 14-12A Preparation of Adjustments ona Spreadsheet for a MerchandisingBusiness: Periodic Method(LO1/2/3/4) The trial balance for the VeniceBeach Kite Shop, a business owned by MollyYoung is shown belowon page 552. Year-endadjustment information is as follows:(a, A physical count shows that merchandiseb)inventory costing $85,000 is on hand as ofDecember 31, 20--.(c, Young estimates that customers will begranted $5,700 in refunds of this year'sd,e)sales next year and the merchandiseexpected to be returned will have a cost of$4,300.Page 818 pages leftII 8:34 1Check Figure:/ Est. ending inv.: $39,000P 13-9A Retail Inventory MethodLO4 The following information is provided byRaynette's Pharmacy for the last quarter of itsfiscal year ending on March 31, 20--:CostRetailInventory, start of period,January 1, 20--$$32,00052,000176,000 268,000Net purchases during theperiodNet sales for the period260,000Required1. Estimate the ending inventory as ofMarch 31 using the retail inventorymethod.2. Estimate the cost of goods sold for thetime period January 1 through March 31using the retail inventory method.Answer ĮCheck Figure:/ Est. ending inv.: $39,000Series B ExercisesE 13-1B Inventory Errors(LO1) Assume that in year 1, the endingmerchandise inventory is understated byPage 1012 pages leftI

Adjusting entries: These entries are passed at the end of the year under the accrual based…

E 14-11A Journalize Adjusting Entry for Inventory Shrinkage: Perpetual Inventory System (LO5) On December 31, Anup Enterprises completed a physical count of its inventory. Although the merchandise inventory account shows a balance of $350,000, the physical count comes to $325,000. Prepare the appropriate adjusting entry under the perpetual inventory system.

E 14-11A Journalize Adjusting Entry for Inventory Shrinkage: Perpetual Inventory System (LO5) On December 31, Anup Enterprises completed a physical count of its inventory. Although the merchandise inventory account shows a balance of $350,000, the physical count comes to $325,000. Prepare the appropriate adjusting entry under the perpetual inventory system.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 10PA: 2. Net income, 185,000 Appendix 2 PR 5-10A Periodic inventory accounts, multiple-step income...

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