Record the end of period adjustment to determine the amount of cost of goods sold, including any "book-to-physical" adjustment that might be needed. (How to get the inventory, ending? # Inventory Management Case Study## OverviewThis section will discuss the inventory transactions of Home Hardware, which began with an initial stock of shovels. The following data provides insights into the sales and purchases over a specific month.## Transaction Details- **Initial Inventory:** - Starting with 35 shovels - Total initial cost: $175### Monthly Transactions:- **January 2:** - Sold 9 shovels on account. - Selling price: $10 per unit. - **January 16:** - Sold 12 shovels on account. - Selling price: $10 per unit.- **January 18:** - Bought 4 shovels on account. - Cost: $5 per unit.- **January 19:** - Sold 12 shovels on account. - Selling price: $10 per unit.- **January 24:** - Bought 12 shovels on account. - Cost: $5 per unit.- **January 31:** - Conducted an inventory count. - Determined that 15 units were on hand.This data provides a detailed look at inventory management and financial transactions related to stock handling. **Required:**1. Prepare the journal entries that would be recorded using a periodic inventory system. *(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)*[Button: View transaction list]---## Journal Entry Worksheet**Step 6****Instructions:**Record the end of period adjustment to determine the amount of cost of goods sold, including any "book-to-physical" adjustment that might be needed.*Note: Enter debits before credits.*| Date | General Journal | Debit | Credit ||------------|-------------------------|-------|--------|| January 31 | Cost of Goods Sold | 180 | || | Inventory, Ending | | 175 |[Button: Record entry] [Button: Clear entry] [Button: View general journal]---This worksheet is used to record journal entries under a periodic inventory system. Adjustments are made at the end of the period to reflect the cost of goods sold and any discrepancies in inventory.

The adjustment entry is to be made under periodic inventory system at year end to record cost of…

Answered: Record the end of period adjustment to…

Record the end of period adjustment to determine the amount of cost of goods sold, including any "book-to-physical" adjustment that might be needed. (How to get the inventory, ending?

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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Record the end of period adjustment to determine the amount of cost of goods sold, including any "book-to-physical" adjustment that might be needed. (How to get the inventory, ending?

# Inventory Management Case Study

## Overview

This section will discuss the inventory transactions of Home Hardware, which began with an initial stock of shovels. The following data provides insights into the sales and purchases over a specific month.

## Transaction Details

- **Initial Inventory:**
- Starting with 35 shovels
- Total initial cost: $175

### Monthly Transactions:

- **January 2:**
- Sold 9 shovels on account.
- Selling price: $10 per unit.

- **January 16:**
- Sold 12 shovels on account.
- Selling price: $10 per unit.

- **January 18:**
- Bought 4 shovels on account.
- Cost: $5 per unit.

- **January 19:**
- Sold 12 shovels on account.
- Selling price: $10 per unit.

- **January 24:**
- Bought 12 shovels on account.
- Cost: $5 per unit.

- **January 31:**
- Conducted an inventory count.
- Determined that 15 units were on hand.

This data provides a detailed look at inventory management and financial transactions related to stock handling.

**Required:**

1. Prepare the journal entries that would be recorded using a periodic inventory system. *(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)*

[Button: View transaction list]

---

## Journal Entry Worksheet

**Step 6**

**Instructions:**
Record the end of period adjustment to determine the amount of cost of goods sold, including any "book-to-physical" adjustment that might be needed.

*Note: Enter debits before credits.*

| Date | General Journal | Debit | Credit |
|------------|-------------------------|-------|--------|
| January 31 | Cost of Goods Sold | 180 | |
| | Inventory, Ending | | 175 |

[Button: Record entry] [Button: Clear entry] [Button: View general journal]

---

This worksheet is used to record journal entries under a periodic inventory system. Adjustments are made at the end of the period to reflect the cost of goods sold and any discrepancies in inventory.

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