The records of Penny Co. indicated that $417,650 of merchandise should be on hand on December 31. The physical inventory indicates that $414,310 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 31. If an amount box does not require an entry, leave it blank. Dec. 31

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: Sheridan Company uses a perpetual inventory system. Its beginning inventory consists of 68 units…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Tomorrows Electronic Center began July with 90 units of merchandise inventory that cost $60 each.…

A: It is important for businesses to carefully evaluate their inventory needs and select the method…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Periodic Inventory System:The periodic inventory system is a method for  monitoring  on both the…

Q: Vaughn Company uses a perpetual inventory system. Its beginning inventory consists of 88 units that…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: general journal Required: Based on the information above, record the adjusting journal entries that…

A: Journal entry is an art of recording classifying and summarising the business transaction into…

Q: COVID Co's fiscal year ends on December 31. COVID determines inventory quantity by a physical count…

A: Explanation 1) Included: Gooods are purchased terms fob shipping point on Dec 24 no mattter that…

Q: Novelty Furnishings Company’s perpetual inventory records indicate that $677,500 of merchandise…

A: Inventory shrinkage is a term in the inventory control process that shows the loss of inventory. In…

Q: COVID Co's fiscal year ends on December 31 COVID determines inventory quantity by a physical count…

A:

Q: Assuming Met Gala Clothing Company paid MQA, Inc. on August 9 and not on August 15, the Net…

A: Net purchases for the month means cost of goods which are purchased in the particular. Any returns…

Q: A company using the periodic inventory system has merchandise inventory costing $333 on hand at the…

A: Formula to calculate cost of merchandise sold: Cost of merchandise sold = Opening merchandise…

Q: The following information was available from the inventory records of Tony Company for January.…

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 inventory costing $183 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + merchandise  purchased - Ending inventory

Q: A company using the periodic inventory system has merchandise inventory costing $247 on hand at the…

A: Periodic inventory system: Periodic inventory system is a system, in which the inventory is updated…

Q: Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A…

A: In Periodic inventory , the beginning inventory balance is written off by  debiting it  to income…

Q: A company using the periodic inventory system has inventory costing $188 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending…

A: Lower of cost or NRV:It implies an approach that is being followed while accounting for the…

Q: Suppose that on April 13, 2018, both Company A and Company B sold inventory with a cost of $59,500.…

A: Step 1The calculation of the value of inventory on April 13 is as follows: CompanyInventory…

Q: Shankar Company uses a periodic system to record Inventory transactions. The company purchases…

A: Under a periodic inventory system cost of goods sold will be calculated at the end of the period…

Q: omputers has the following transactions in Septem ne icon to view the transactions.) he purchase…

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

Q: On April 10, 2021Daisy Company purchased merchandise worth 1,600 on credit from Fox, Inc., 2/10 , n…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending…

A: Lower of cost or NRV:It implies an approach that is being followed while accounting for the…

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 such as FIFO, LIFO and the average method. Ending…

Q: At the beginning of the year, Snaplt had $11,800 of inventory. During the year, Snaplt purchased…

A: Inventory refers to the goods and materials that a company holds for sale or production. These can…

Q: The Income Statement section of the Johnson Company worksheet for the year ended December 31, 20X1,…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending…

A: Lower of cost or NRV:It implies an approach that is being followed while accounting for the…

Q: A company using the periodic inventory system has inventory costing $137 on hand at the beginning of…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: nethod at the end of each period, as if it uses a periodic inventory system. Assume its accounting…

A: The periodic inventory system is used for valuing the inventory. Under this method the inventory is…

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: On June 5, a company purchases 170 units of inventory on account for $20 each, with terms 1/10,…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods…

A:

Q: Corona Company's perpetual inventory records indicate that $199,240 of merchandise should be on hand…

A: Adjusting entry: It implies to the journal entry that is booked or recorded by the business at the…

Q: Pharoah Company cornmenced operations on July 1. Pharoah Company uses a periodic inventory system.…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

Q: he adjustment to inventory for the difference in count. 3) May 31. The lower of cost of market is…

A: We know that under the periodic inventory system inventory will be physically count at year end and…

Q: Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records…

A: Answer:- A company's ending inventory is the amount of items it has on hand at the conclusion of an…

Q: The Phoenix Corporation's fiscal year ends on December 31. Phoenix determines inventory quantity by…

A: FOB Shipping point FOB Destination point  Under this system, the responsibility of the seller over…

Q: Records from FDNACCT Co. revealed the following data: Inventory, January 1= P130,000 Physical count,…

A: Under periodic inventory system, the cost of goods sold is not recorded with every sales…

Q: Larkspur, Inc. uses a perpetual inventory system. Its beginning inventory consists of 210 units that…

A: Perpetual inventory system is an inventory system in which all transactions related to inventory…

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: August 1 August 31 llowances $9 10 25

A: Answer : Schedule of the cost of goods sold : Particular   Amount Inventory August 1   $97,070…

Q: The beginning inventory at ABC Supplies and data on purchases and sales for a three-month period…

A: First-in, first-out method is the method that is used to record the purchase sales and inventory of…

Q: Shankar Company uses a perpetual system to record inventory transactions. The company purchases…

A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…

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.