Nix it company ledger on july 31 its fiscal year end includes the following accounts that have normal balances (Nix it uses the perpetual system) merchandise inventory 37800 retained eranings 115300 dividends 7000 sales 160200 sales discounts 4700 sales returns and allowances 6500 cost of goods sold 105000 depreciation expense 10300 salaries expense 32500 miscelleneous expenses 5000 a physical count of its July 31 year-end inventory reveals that the cost of the merchandise inventory still available is 35900 inventory shrinkage 1900 question prepare journal entries toclose the balances in temporary revenue and expense and accounts

Q: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Under the weighted average model, the cost of the goods that are available for sale divided by the…

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: We have the following information: Merchandise inventory: $37,800 Retained Earnings: $115,300…

Q: The following selected transactions were completed by Betz Company during July of the current year.…

A: Merchandising Inventory is the cost of goods in hand available for sale at any point in time.…

Q: Prepare closing entries. (List all debit entries before credit entries. Credit account titles are…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: A company purchased $1800 of merchandise on July 5 with terms 2/10, n/30. on July 7, it returned…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: mpany using the periodic inventory system has the following account balances: Merchandise Inventory…

A: Solution: Cost of merchandise purchased is the cost of purchases which is computed as purchase cost…

Q: Sarasota Corp. uses a perpetual inventory system. The company had the following inventory…

A: Introduction: Journal entry is used to document a commercial transaction in a corporation's…

Q: [The following information applies to the questions displayed below.]   Nix’It Company’s ledger on…

A: Perpetual inventory system is a method in which a company maintains records of its inventory by…

Q: Assume that Merryland’s Markets had an inventory balance of $32 570 at the close of the last…

A: Perpetual Inventory System A perpetual system, as opposed to a physical count, is a programme that…

Q: Assume that Sunland Company uses a periodic inventory system and has these account balances:…

A: Calculate cost of goods sold and gross profit:

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Inventory shrinkage indicates loss of inventory by normal wear and tear e.g. due to evaporation in…

Q: Litton Industries uses a perpetual inventory system. The company began its fiscal year with an…

A: AMOUNTS TO BE TAKEN : 1. PURCHASE OF INVENTORY = $845,000 2. SALES = $1,420,000 3. COST OF GOODS…

Q: Required information [The following information applies to the questions displayed below.] Nix'It…

A: Inventory- A manufacturing company's inventory is a crucial current asset. Inventory is the actual…

Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…

A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the…

A: Under dollar value LIFO method, inventory is adjusted with the increase or decrease in the price…

Q: Franco Company's inventory records showed the following transactions for the fiscal period ended…

A: FIFO is first in first out method in which inventories which are purchased first will be sold out…

Q: Riverbed Company had the following account balances at year-end: Cost of Goods Sold $62,380,…

A: Perpetual Inventory System: Perpetual inventory systems are programs that continually estimate your…

Q: Oriole Company completed the following transactions in October: Oriole uses a perpetual inventory…

A: Introduction: The amount of days it takes to recover accounts receivable is referred to as the cash…

Q: Litton Industries uses a perpetual inventory system. The company began its fiscal year with…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Sales staff salaries expense 2,500 Prepare a multiple-step Income statement for the year ended…

A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…

Q: Journalize the adjusting entry for the inventory shrinkage for Madison Company for the year ended…

A: When the physical count of Inventory fall short than the inventory as per the inventory records, the…

Q: Required information Skip to question   [The following information applies to the questions…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: SCC Company reported the following for the current year: Net sales Cost of goods sold Beginning…

A: a. Numerator/Denominator=Inventory turnoverCost of goods sold/Average inventory=Inventory…

Q: A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account…

A: A perpetual inventory system seems to be an application that constantly assesses your inventory…

Q: Using the following data taken from Connor Inc. which uses a periodic inventory system to answer…

A: Gross profit = Net sales - cost of goods sold where, Net sales = Sales - sales return - sales…

Q: A company that uses the perpetual inventory system purchases inventory for P65,000 on account, with…

A: Under perpetual inventory system, discount under terms is accounted for as adjusting to Inventory…

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

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: The controller of Wildhorse Corp. has provided you with the following information relating to its…

A: As per Generally Accepted Accounting Principles (GAAP), inventory is measured at lower of cost or…

Q: Using the following data taken from Payton Inc. which uses a periodic inventory system to answer…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: At the end of January of the current year, the records of Donner Company showed the following for a…

A: There are two inventory costing methods namely the Periodic Method and the Perpetual Method:Under…

Q: SCC Company reported the following for the current year: Net sales $ 52,000 45,900 Cost of goods…

A: Ratio analysis helps to analyze the financial statements of the company. The management can take…

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

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…

Q: A company using the periodic inventory system has the following account balances: Merchandise…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: At the end of January of the current year, the records of Donner Company showed the following for a…

A: There are two inventory costing methods namely the Periodic Method and the Perpetual Method:Under…

Q: Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts…

A: Closing Entry: Closing entries are passed at the end of accounting period to close the balances of…

Q: Using the following data taken from Hsu's Imports Inc. which uses a periodic inventory system to…

A: The cost of inventory includes all costs incurred in bringing the inventory to its present location…

Q: Required: a. Compute the amount of goods available for sale. b. & c. Compute the amount of ending…

A: Under the weighted average model, the cost of the goods that are available for sale divided by the…

Q: Assume that Pronghorn Company uses a periodic inventory syste Returns and Allowances $14,600,…

A: The cost of goods sold means the total amount of direct costs that are related to the production of…

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.