E5.7 (LO 4), AP Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Utilities Expense $29,000, Sales Revenue $115.000, Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $13,900. Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries.

E5.7 (LO 4), AP Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Utilities Expense $29,000, Sales Revenue $115.000, Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $13,900. Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries.

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Description: **Exercise 5.7 (Learning Objective 4)**AP Juan Morales Company had the following account balances at year-end: - Cost of Goods Sold: $60,000- Inventory: $15,000- Utilities Expense: $29,000- Sales Revenue: $115,000- Sales Discounts: $1,200- Sales Ret

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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