Assuming that the amount of the physical count of the stock of merchandise is less than the recorded amount, the adjusting entry is a debit to Cost of Goods Sold and a credit to Merchandise Inventory for the amount of the difference. On the other hand, if the physical count of the stock of merchandise is more than the recorded amount, the adjusting entry is to debit Merchandise Inventory and credit Cost of Goods Sold for the amount of the difference. Chloe Company employs the perpetual inventory system. Cost of Goods Sold for the year before any adjustment is $275,450. The computer record shows the amount of ending inventory to be $55,382, while the physical count shows ending inventory to be $51,405. Record the adjustment into T accounts and then journalize the adjusting entry
Assuming that the amount of the physical count of the stock of merchandise is less than the recorded amount, the
Chloe Company employs the perpetual inventory system. Cost of Goods Sold for the year before any adjustment is $275,450. The computer record shows the amount of ending inventory to be $55,382, while the physical count shows ending inventory to be $51,405. Record the adjustment into T accounts and then journalize the adjusting entry.
| Cost of Goods Sold | Merchandise Inventory | |||||||||||||||||||||||||
|
|
|
| GENERAL JOURNAL | PAGE 1 | |||
|---|---|---|---|---|
| DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
| fill in the blank 6 | ||||
| fill in the blank 8 |
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
