Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise should be on hand on December 31, 20Y1. The physical inventory indicates that $1,109,300 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Stanley Flooring Company for the year ended December 31, 20Y1. Assume that the inventory shrinkage is a normal amount.

Q: Record the adjustment into T accounts and then journalize the adjusting entry.

A: Whenever there is decrease /increase of the physical inventory in comparison to the book value then…

Q: Best Hardware uses a periodic inventory system. Its inven-tory was $38,000 at the beginning of the…

A: Step 1  Perpetual Inventory management system, It is a system to manage the inventory and reconcile…

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: 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: A merchandising company’s ledger on May 31, its fiscal year-end, includes the following accounts…

A: Journalize the entries in the following way:

Q: Presented below is information related to Windsor, Inc. for the month of January 2020. Ending…

A: Closing entries are used to close the temporary accounts to the permanent account. The income…

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: 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: 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: 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: 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: 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: 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: 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: The following information was available from the inventory records of Sunland Company for January:…

A:

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

A: Inventory can be valued on the basis of the flow of method assumed by the entity. The business…

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: Presented below is information related to Wildhorse Co., owned by D. Flamont, for the month of…

A: Income = Sales- expenses = $369000- $333300 = $ 35700 Cost of goods sold= $214000+$ 3000= $ 217300

Q: Records from FDNACCT Co. revealed the following data: Inventory, January 1= P130,000 Physical count,…

A: Under periodic inventory system, the cost of goods sold is not recorded with every sales…

Q: Windsor, Inc. took a physical inventory on December 31 and determined that goods costing $222,500…

A: Prepare Windsor’s ending inventory.

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

A: FIFO- Under First in first out method inventories that are brought by the entity at earlier dates…

Q: Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s…

A: Adjustment of Inventory at NRV: If we are talking about inventory, net realisable value (NRV) is the…

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

A: Prepare adjusting entry:

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: Records from FDNACCT Co. revealed the following data: Inventory, January 1 = P340,000 Physical…

A: Using periodic inventory system, the inventory and cost of goods sold is valued at end of accounting…

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

A: (1) FIFO

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: 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: 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: At year-end, the perpetual inventory records of Blue Company showed merchandise inventory of…

A: Perpetual inventory system is the system in which transaction to purchase and sale of goods are…

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: The following information was available from the inventory records of Sunland Company for January:…

A: Under weighted average method of inventory, weighted average unit cost is computed for valuation of…

Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing…

A: A physical check of stock is a real tally of the considerable number of items that a business stock.…

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.