The records of Penny Co. indicated that $417,650 of merchandise should be on hand on December 31. The physical inventory indicates that $414,310 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 31. If an amount box does not require an entry, leave it blank. Dec. 31

Q: On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Hualien Company adopts the periodical inventory system, and its adjusted trial balance on December…

A: Closing entries are passed at the end of accounting period to transfer the balance of temporary…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: The following purchase transactions occurred during the last few days of Whilczel Company's business…

A: In Periodic Inventory system, Inventory valuation is done at the end of the year, Rather than…

Q: COVID Co's fiscal year ends on December 31. COVID determines inventory quantity by a physical count…

A: Explanation 1) Included: Gooods are purchased terms fob shipping point on Dec 24 no mattter that…

Q: Castle Furnishings Company’s perpetual inventory records indicate that $675,400 of merchandise…

A: Shrinkage: The cost of difference between the recorded inventory value and physical count of…

Q: A company purchased $1800 of merchandise on July 5 with terms 2/10, n/30. on July 7, it returned…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: When Sheffield counted its inventory on June 30, it determined that there were 120 books with a…

A: Journal entry is a primary entry that records the financial transactions initially. The company…

Q: Audio Outfitter Inc., which uses a perpetual inventory system, experienced a normal inventory…

A: Perpetual inventory system: In this system, the record of inventory is maintained in a computerized…

Q: mpany using the periodic inventory system has the following account balances: Merchandise Inventory…

A: Solution: Cost of merchandise purchased is the cost of purchases which is computed as purchase cost…

Q: COVID Co's fiscal year ends on December 31 COVID determines inventory quantity by a physical count…

A:

Q: On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit…

A: Given that, the company sold merchandise costing $4500  value of merchandise sold = $7800   sales…

Q: ssume that the company uses perpetual inventory system and weighted average method, prepare journal…

A:

Q: Matcha Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary…

A: Note: In the given question, Total 7 points are given. No point is missed from my side. Thank You…

Q: the records of Penny company indicated that $ 415,000 of merchandise should be on hand on december…

A: Inventory shrinkage: Any errors or losses of merchandise due to breakage, theft or spoilage are…

Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance…

A: a.

Q: Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting…

A: Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Q: Gingerbread, Corp. presents the following information for inventory purchases and sales throughout…

A: "Periodic" means that the Inventory account is not routinely updated during the accounting period.…

Q: The inventory records of Spiro Company indicate that $62,500 of merchandise should be on hand at the…

A: Journal entry is the practice of recording economic transactions for the first time in the books of…

Q: What accounts would be debited and credited to record the adjustment for the inventory shrinkage at…

A: Perpetual inventory system:   In this system, the record of inventory is maintained in a…

Q: September 12, Ryan Compa

A: Journal entry Journal entry is a set of economic events which can be measured in financial terms.…

Q: A company reports merchandise inventory on December 31 at $250,000 but LCM applied to items is…

A: In the given situation, the rectification entry needs to be passed as the company seems to follow…

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: King Supply maintains its internal inventory records using perpetual FIFO, but for financial…

A: Date Account Titles and Explanation Debit Credit   Cost of Goods sold  $      15,000…

Q: The following inventory transactions took place near December 31, 2021, the end of the Rasul…

A: A transaction is a formalized agreement between a buyer and a seller to transfer things, services,…

Q: madison company perpetual inventory records indicate that 875,300 of merchandise should be on hand…

A: Adjusting entry: Date Account Title and Explanation Debit ($) Credit ($) oct 31 Cost…

Q: Sun Co. uses a periodic inventory system. Beginning inventory on Jan. 1 was overstated by $32,000,…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Madison Company's perpetual inventory records indicate that $538,630 of merchandise should be on…

A: Journal entry: It is a systematic record of a financial transaction recorded in chronological order.

Q: Presented below is information related to Blossom Company, owned by D. Flamont, for the month of…

A: Note: As per the policy, we’ll answer the first question since the exact one wasn’t specified.…

Q: Based upon the following data for a business with a periodic inventory system, determine the cost of…

A: Cost of goods sold shows the cost pertaining to the goods that are being sold by the business.

Q: On September 12, Ryan Company sold merchandise in the amount of $6,400 to Johnson Company, with…

A: The periodic inventory system is a system in which the updates to the inventory and cost of goods…

Q: Boston Bait Shop uses a periodic inventory system. At December 31, Year 2, the accounting records…

A: The beginning inventory of Year 2 is the same as the ending inventory of Year 1 ie. $2,800 The…

Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a balance…

A: The following computations are done for the records of the inventory count of the Company.

Q: Bronson Inc. is a retailer of sporting goods. Bronson’s beginning inventory is $80,000 and…

A: Periodic inventory system: Periodic inventory system is a system, in which the inventory is updated…

Q: Presented below is selected information related to Blue Co. for the month of January 2022. Ending…

A: Ending inventory are overstated by $800 ($23,710 - $22,910)

Q: Boston Bait Shop uses a periodic inventory system. At December 31, Year 2, the accounting records…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Novelty Furnishings Company's perpetual inventory records indicate that $755,000 of merchandise…

A: Inventory Shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: Gordon Company’s inventory at June 30, 2002, was $75,000 based on a physical count of goods priced…

A: Solution:- Calculation of Gordon report as inventory on its June 30, 2002, balance sheet as follows…

Q: Hadison Company's perpetual inventory records indicate that $531,630 of merchandise should be on…

A: Solution:- Preparation of Adjusting journal entry for the inventory shrinkage for Madison company…

Q: Jeana's Furniture's unadjusted Merchandise Inventory account at year-end is $69,000. The physical…

A: The shrinkage in inventory is treated as a normal expense and debited to the cost of goods sold.

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory is one of the important current asset of the business. There are several methods used for…

Q: Hahn Flooring Company’s perpetual inventory records indicate that $1,333,150 of merchandise should…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: The perpetual inventory records of Penny Co. indicate that $415,000 of merchandise should be on hand…

A: Inventory as per books = $415,000 Physical actual inventory  $370,000 Shrinkage amount =…

Q: Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries…

A: Perpetual Inventory System :— A perpetual inventory system is a program that continuously estimates…

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: nventory was determined by physical count on October 31 as P77,500.   Required: Compute the…

A: solution concept In case of FOB shipping terms the goods has to be accounted for in the inventory of…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.