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QS 5-6 Accounting for shrinkage - perpetual system Nix'It Company's ledger on July 31, its financial year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory T. Nix, Capital. T. Nix, Withdrawals Sales. Sales discounts $ 34,800 115,300 7,000 157,200 1,700 QS 5-7 Closing entries Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 3,500 102,000 7,300 29,500 2,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $32,900. Prepare the entry to record any inventory shrinkage. Refer to QS 5-6 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage that is made to solve QS 5-6.

QS 5-6 Accounting for shrinkage - perpetual system Nix'It Company's ledger on July 31, its financial year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory T. Nix, Capital. T. Nix, Withdrawals Sales. Sales discounts $ 34,800 115,300 7,000 157,200 1,700 QS 5-7 Closing entries Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 3,500 102,000 7,300 29,500 2,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $32,900. Prepare the entry to record any inventory shrinkage. Refer to QS 5-6 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage that is made to solve QS 5-6.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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QS 5-6 Accounting for shrinkage - perpetual system Nix'It Company's ledger on July 31, its financial year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory ........ $ 34,800 T. Nix, Capital ...... 115,300 T. Nix, Withdrawals ..... 7,000 157,200 1,700 Sales ....... Sales discounts .. Sales returns and allowances Cost of goods sold ... Depreciation expense. Salaries expense .... Miscellaneous expenses $ 3,500 102,000 7,300 29,500 2,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $32,900. Prepare the entry to record any inventory shrinkage. QS 5-7 Closing entries Refer to QS 5-6 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage that is made to solve QS 5-6.
Transcribed Image Text:QS 5-6 Accounting for shrinkage - perpetual system Nix'It Company's ledger on July 31, its financial year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory ........ $ 34,800 T. Nix, Capital ...... 115,300 T. Nix, Withdrawals ..... 7,000 157,200 1,700 Sales ....... Sales discounts .. Sales returns and allowances Cost of goods sold ... Depreciation expense. Salaries expense .... Miscellaneous expenses $ 3,500 102,000 7,300 29,500 2,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $32,900. Prepare the entry to record any inventory shrinkage. QS 5-7 Closing entries Refer to QS 5-6 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage that is made to solve QS 5-6.
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