Examlex
Kennedy Company had the following account balances at year-end: cost of goods sold $80,000; merchandise inventory $15,000; operating expenses $39,000; sales $144,000; sales discounts $1,600; and sales returns and allowances $2,300. A physical count of inventory determines that merchandise inventory on hand is $14,400.
Instructions
(a) Prepare the adjusting entry necessary as a result of the physical count.
(b) Prepare closing entries.
Q14: An accumulated depreciation account<br>A) is a contra-liability
Q15: The adjusted trial balance of Werly Book
Q19: Merchandise inventory is classified as a current
Q29: The entries in a sales journal will
Q41: For companies that use a perpetual inventory
Q41: The balance in the income summary account
Q116: The matching principle attempts to match _
Q161: If a company is given credit terms
Q195: If business pays rent in advance and
Q205: Sherman Air Charter signed a four-month note