The Trial Balance for a Merchandiser,before the Journal Entries Below,is

question 88

Essay

The trial balance for a merchandiser,before the journal entries below,is as follows.A physical count of inventory at the end of the accounting year reveals $28,000 of inventory on hand.(Assume a perpetual inventory system.)
$$\begin{array} { | l | r | r | } \hline & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 12,600 & \\\hline \text { Accounts Receivable } & 2,400 & \\\hline \text { Prepaid Rent } & 800 & \\\hline \text { Merchandise Inventory } & 30,000 & \\\hline \text { Accounts Payable } & & \$ 4,200 \\\hline \text { Salaries Payable } & & 1,000 \\\hline \text { Notes Payable } & & 800 \\\hline \text { Yung, Capital } &&13,800 \\\hline \text { Yung, Withdrawals } & 1,000 & \\\hline \text { Sales Revenue } & &96,000\\\hline \text { Cost of Goods Sold } &23,000& \\\hline \text { Delivery Expense } & 2,000 & \\\hline \text { Salaries Expense } & 21,000 & \\\hline \text { Rent Expense } & 14,000 & \\\hline \text { Selling Expense } &8,500 \\\hline \text { Supplies Expense }& \underline { 500 } \\\hline \text {Total} & \$ 115,800 & \$ 115,800\\\hline\end{array}$$ Prepare the journal entry to record the inventory shrinkage and prepare all closing entries.Omit explanations.

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Definitions:

Discount

A reduction from the usual cost of something.

Cash Sales

Transactions where payment is made in full at the time of the sale, typically in cash or equivalent.

Accounts Receivable Period

The mean period required for a company to collect payments due from its clients.

Discounts

A reduction from the usual cost of something, often applied to prompt payment or for certain customers like students or seniors.