Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting entries based upon the following: The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on hand. Assume any shrinkage is a normal amount. Sales returns of $125,000 and merchandise returns of $80,000 are estimated for the current year’s sales.

Q: Nash's Trading Post, LLC uses a periodic inventory system. Details for the inventory account for the…

A: Formula: Sales units = Beginning inventory + Purchases - Ending inventory. Gross profit = Sales -…

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: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory refers to the stock that is left with the company at the end of the year or the stock 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: The records of Penny Co. indicated that $417,650 of merchandise should be on hand on December 31.…

A: Amount of inventory shrinkage = Inventory as per records - physical inventory = $417,650 - $414,310…

Q: A company has the following transactions during March: March 3 Purchases inventory on account for…

A: Solution Concept Under perpetual inventory system the inventory records is updated regularly This…

Q: The Sherri’s Retail Shop uses the FIFO retail inventory method to determine its ending inventory.…

A: In this numerical has covered the concept of Retail Method of Inventory Valuation

Q: Waren's Gift Shop uses a periodic inventory system. At December 31, Year 1, the accounting E records…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Under periodic inventory system, no record is made at regular intervals for purchase and sale of…

Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period…

A: The Numerical has covered the concept of Valuing Ending Inventory Under FIFO, LIFO,  Average Method.…

Q: The records of Penny Co. indicated that $384,630 of merchandise should be on hand on December 31.…

A: solution : given inventory as per records              =$384630 inventory as per physical count…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Periodic Inventory System is the system in which the COGS and the cost of the Ending Inventory are…

Q: Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A…

A: In Periodic inventory , the beginning inventory balance is written off by  debiting it  to income…

Q: Easy Software uses a periodic inventory system. Its inventory was $36,000 at the beginning of the…

A: Cost of Good Sold - It is refer to the direct cost associated with production of goods or services.…

Q: Cost Retail Beginning inventory $ 47,000   $ 62,000   Net purchases   10,480     32,800   Net…

A: Under retail inventory method to estimate average cost  of ending inventory and cost of goods sold…

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: The cash value attributed with the products in stock at the end of the financial period is known as…

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

A: The Numerical has covered the concept of Valuing Ending Inventory Under FIFO, LIFO,  Average Method.…

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Hence, COGS is $111,000. It is obtained by addition of sales made on March 14 and August 31 Here,…

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: Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory.…

A: The cost of goods sold refer to the cost of producing the goods which are sold in the market. It is…

Q: Jackie’s Parts Shop recorded the following purchases and sales during the past year (see attached…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: Seifert Company uses the periodic inventory system. At the end of the accounting period, on December…

A: Journal entries refer to transaction recording into the day book of the company or accounts of…

Q: Coronado Company's record of transactions concerning part X for the month of April was as follows.…

A: LIFO is the method in which the inventory bought at the end has to be sold first.

Q: Gladstone Limited tracks the number of units purchased and sold throughout each accounting period…

A: The question is based on the concept of Cost Accounting.

Q: Wittmann Co. began operations on July 1. It uses a perpetual inventory system.  During July, the…

A: Inventory is made up of three parts: raw materials, work-in-process items, and finished goods, and…

Q: Computers's Merchandise Inventory account at​ year-end is showing a balance of $43,000. The…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

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: Larkspur, Inc. uses a perpetual inventory system. Its beginning inventory consists of 210 units that…

A: Perpetual inventory system is an inventory system in which all transactions related to inventory…

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: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Note:- I am only answering the wrong part..   Specific- Identification…

Q: Click Computers's Merchandise Inventory account at year-end is showing a balance of $43,000. The…

A: The inventory shrinkage occurs when the physical count of inventory is less than the recorded value…

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: Office Outfitters Inc. which uses a perpetual inventory system, experienced an inventory shrinkage…

A: Introduction  Inventory shrinkage is the loss in inventory due to various reasons such as theft,…

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

A: FIFO - First in first out is the method of inventory where the goods purchased are sold first and…

Q: Crosby Company owns a chain of hardware stores throughout the stste. The company uses s periodic…

A: In this question, we will make table, which shows estimation of LIFO cost of ending inventory and…

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: Blue Company took a physical inventory on December 31 and determined that goods costing $190,900…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise…

A: Journal entry is a record of financial transaction in the books of accounts maintained by the…

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.