Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $25,000 below the bus the goods, which was $104,000. Before any adjustments at the end of the period, the company's Cost of Goods Sold account has a balance of $405,000. Read the requirements. Requirement 1. Journalize any required entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. For situations that do not require an entry select "No Entry Required" in the first cell in the "Accounts" column and leave all other cells blank.) The required journal entry would be: Date Dec. 31 Accounts and Explanation BETER Debit Credit Requirement 2. At what amount should the company report merchandise inventory on the balance sheet? E and S should report merchandise inventory on the balance sheet at Requirement 3. At what amount should the company report cost of goods sold on the income statement? E and S should report cost of goods sold on the income statement at

Some of E and S Electronics' merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $25,000 below the bus the goods, which was $104,000. Before any adjustments at the end of the period, the company's Cost of Goods Sold account has a balance of $405,000. Read the requirements. Requirement 1. Journalize any required entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. For situations that do not require an entry select "No Entry Required" in the first cell in the "Accounts" column and leave all other cells blank.) The required journal entry would be: Date Dec. 31 Accounts and Explanation BETER Debit Credit Requirement 2. At what amount should the company report merchandise inventory on the balance sheet? E and S should report merchandise inventory on the balance sheet at Requirement 3. At what amount should the company report cost of goods sold on the income statement? E and S should report cost of goods sold on the income statement at

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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At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting entries are recorded. The physical count of inventory indicates that the actual inventory amount is $1500 less than the balance in the Inventory account. What balance will the company report for Cost of Goods Sold on the 2020 income statement? $49300.$50800.$52300.$53800.
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