The following balances are found in the general ledger of GHI Sales after recording he necessary adjusting entries, except for inventories, in the year 2014: 5,000,000 2,100,000 10,000 Purchases Freight-in Purchase Returns 20,000 Inventory, beginning Castro, Capital Castro, Drawing 50,000 2,000,000 500,000 Sales Sales Returns 5,000 10,000 Selling Expense Interest Revenue 25,000 450,000 Interest Expense 15,000 Accounts Payable 202.000 Sales Discounts Administrative Expense 500,000 Accounts Receivable 1,500,000 The ending inventory based on physical count in P140.000.
The following balances are found in the general ledger of GHI Sales after recording he necessary adjusting entries, except for inventories, in the year 2014: 5,000,000 2,100,000 10,000 Purchases Freight-in Purchase Returns 20,000 Inventory, beginning Castro, Capital Castro, Drawing 50,000 2,000,000 500,000 Sales Sales Returns 5,000 10,000 Selling Expense Interest Revenue 25,000 450,000 Interest Expense 15,000 Accounts Payable 202.000 Sales Discounts Administrative Expense 500,000 Accounts Receivable 1,500,000 The ending inventory based on physical count in P140.000.
The following balances are found in the general ledger of GHI Sales after recording he necessary adjusting entries, except for inventories, in the year 2014: 5,000,000 2,100,000 10,000 Purchases Freight-in Purchase Returns 20,000 Inventory, beginning Castro, Capital Castro, Drawing 50,000 2,000,000 500,000 Sales Sales Returns 5,000 10,000 Selling Expense Interest Revenue 25,000 450,000 Interest Expense 15,000 Accounts Payable 202.000 Sales Discounts Administrative Expense 500,000 Accounts Receivable 1,500,000 The ending inventory based on physical count in P140.000.
a. Prepare the required adjusting entries for inventory under perpetual and periodic inventory system.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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