BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

MERCHANDISE INVENTORY ADJUSTMENTS: PERIODIC INVENTORY SYSTEM WITH SALES RETURNS AND ALLOWANCES Use the information provided below to prepare a partial end-of-period spreadsheet for Nick’s Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $45,000. Nick estimates that customers will be granted $5,500, in refunds next year for merchandise sold this year. The estimated cost of the returned inventory is $3,500.

images

  1. 1. Complete the Adjustments columns for Merchandise Inventory and related accounts.
  2. 2. Extend all accounts to the Adjusted Trial Balance columns.
  3. 3. Prepare the cost of goods sold section from the spreadsheet.

1.

To determine

Complete the adjustments columns for merchandise inventory and related accounts.

Explanation

Periodic inventory system:

The method or system of recording the transactions related to inventory occasionally or periodically are referred to as periodic inventory system.

Adjustments for merchandise inventory- Periodic inventory system:

The purchase account is debited and cash or accounts payable is credited, if merchandise inventory is purchased and, cash or accounts receivables account is debited and sales account is credited, if merchandise inventory is sold under periodic inventory system.

Adjustments for sales returns and allowances- Periodic inventory system:

The sales returns and allowances accounts are debited and accounts receivable account is credited if, customers return merchandise purchased this year or the previous year...

2.

To determine

Extend all accounts to the adjusted trail balance.

3.

To determine

Prepare the cost of goods sold section from the spreadsheet.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is an attribute?

Accounting Information Systems

Identify and define four different ways to manage activities so that costs can be reduced.

Managerial Accounting: The Cornerstone of Business Decision-Making

SPOT AND FORWARD RATES Anderson Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)