Tower Junction has Cost of Goods Sold of $112000 before adjusting entries. The physical count of inventory indicates that the actual inventory amount is $1450 greater than the balance in the Inventory account. When Tower Junction prepares closing entries, they will debit Cost of Goods Sold for $113450. credit Cost of Goods Sold for $113450. credit Cost of Goods Sold for $112000. credit Cost of Goods Sold for $110550.

Q: Record the adjustment into T accounts and then journalize the adjusting entry.

A: Whenever there is decrease /increase of the physical inventory in comparison to the book value then…

Q: Hualien Company adopts the periodical inventory system, and its adjusted trial balance on December…

A: Closing entries are passed at the end of accounting period to transfer the balance of temporary…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: Question 1: Which of the following accounts is(are) understated by P 50,000 at th end of year 2022…

A: During examination of the financial statements of France Company for the year ended December 31,…

Q: Castle Furnishings Company’s perpetual inventory records indicate that $675,400 of merchandise…

A: Shrinkage: The cost of difference between the recorded inventory value and physical count of…

Q: Blue Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: Inventory is the stock of raw material that is used by the business in the production process.

Q: Audio Outfitter Inc., which uses a perpetual inventory system, experienced a normal inventory…

A: Perpetual inventory system: In this system, the record of inventory is maintained in a computerized…

Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a balance…

A: Answer 1) It is given in the question that the inventory account shows the balance of $250000 but on…

Q: Ibri company has an Inventory of RO 68,000 and RO 134,000 of Cost of goods sold in its unadjusted…

A: Given that: Merchandise inventory value = RO 68000 Inventory as per physical count = RO 61000

Q: Merchandise inventory RO 5,000 Dr/ Cost of goods sold RO 5,000 Cr

A: When there is difference in the physical inventory count the same has to be adjusted between the…

Q: The following is information regarding inventory of Dili Ltd during September 2019. Dili Ltd uses a…

A: FIFO stands for First-In, First-Out.  In the FIFO inventory method, purchases at first will be sell…

Q: Skysong Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $213,418,700 at…

A: Allowance to Reduce Inventory to NRV = inventory  at cost - Inventory at realizable value =…

Q: Assume the perpetual inventory system is used unless stated otherwise. Accounting principles for…

A: Given information is: Some of M and C Electronics’s merchandise is gathering dust. It is now…

Q: Metlock Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: Inventory is the current asset held by the entity for the purpose of sale. It is also known as…

Q: The Rock Shop shows the following data related to an item of inventory: Inventory, January 1…

A: Periodic and perpetual are two type of inventory system, inventory under periodic inventory system…

Q: Matcha Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary…

A: Note: In the given question, Total 7 points are given. No point is missed from my side. Thank You…

Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has abalance…

A: a.

Q: Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting…

A: Adjusting entries: Adjusting entries are those entries that are recorded at the end of the year, to…

Q: Ramir Alindogan Catering 's Inventory showed a balance of P100,000 before the year-end adjustments.…

A: Hence the The physical count of goods on hand totaled P97,000 that is different than actual by P3000…

Q: What accounts would be debited and credited to record the adjustment for the inventory shrinkage at…

A: Perpetual inventory system:   In this system, the record of inventory is maintained in a…

Q: If Wakowski Company's ending inventory was actually $86,000 but was adjusted at year end to a…

A: If the inventory is shown as $68,000 instead of $86,000 which shows that the closing inventory is…

Q: Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2020.

A: Account titles Debit Credit 3. Sales Revenue Dr. Accounts receivable 19200 Dr. 19200 Cr.…

Q: The Merchandise Inventory account balance is $56,000. A physical count of inventory reveals that the…

A: SOLUTION- AS PER THE INFORMATION GIVEN IN THE QUESTION  WE HAVE- ACTUAL MERCHANDISE INVENTORY =…

Q: The following information pertains merchandise inventory of Bloom Company at the end of year.  Apply…

A: As per the accounting standards, the inventory is valued at, lower of cost or market price. In the…

Q: Delmar Industries uses the perpetual inventory method in accounting for inventory. Prepare the…

A: Adjusting Entries are journal entries usually made at the end of an accounting period to adjust the…

Q: Delmar Industries uses the perpetual inventory method in accounting for inventory. Prepare the…

A: Perpetual inventory system:  In this inventory system, entries related to inventory are recorded…

Q: Boston Bait Shop uses a periodic inventory system. At December 31, Year 2, the accounting records…

A: The beginning inventory of Year 2 is the same as the ending inventory of Year 1 ie. $2,800 The…

Q: Frisbee Hardware uses a perpetual inventory system. At year-end, the Inventory account has a balance…

A: The following computations are done for the records of the inventory count of the Company.

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: Boston Bait Shop uses a periodic inventory system. At December 31, Year 2, the accounting records…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Sandhill Electronics uses a perpetual inventory system which, at the company’s year-end December 31,…

A: In this numerical has covered the concept of Inventory Valuation.

Q: Rally Wheels, Inc. had the following balances and transactions during 2018:   Beginning…

A: under last in , first out method.  Most recent Purchases are used in cost of goods sold or in…

Q: Office Outfitters Inc. which uses a perpetual inventory system, experienced an inventory shrinkage…

A: Introduction  Inventory shrinkage is the loss in inventory due to various reasons such as theft,…

Q: Assume the perpetual inventory system is used unless stated otherwise.Accounting principles for…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Ibri company has an Inventory of RO 68,000 and RO 134,000 of Cost of goods sold in its unadjusted…

A: Cost of Good Sold - It involves costs which are directly related to the production of product. we…

Q: Wildhorse Company asks you to review its December 31, 2020, inventory values and prepare the…

A: Inventory is the asset held by an entity for the purpose of sale. It is a current asset.

Q: Hahn Flooring Company’s perpetual inventory records indicate that $1,333,150 of merchandise should…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Vermont Resources, which uses the FIFO inventory costing method, has the following account balances…

A: Introduction: When a corporation makes sales using the FIFO technique, the oldest inventory or stock…

Q: Henderson Co.'s perpetual inventory records indicate that $382,800  of merchandise should be on hand…

A: Physical inventory on hand= $ 371000 Records indicate inventory on hand = $ 382800 Cost of goods…

Q: Craig Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: a. Determine the proper inventory balance for Craig Company on December 31, 2020

Q: At year-end, the perpetual inventory records of Blue Company showed merchandise inventory of…

A: Perpetual inventory system is the system in which transaction to purchase and sale of goods are…

Q: If Wakowski Company's ending inventory was actually $86,000 but was adjusted at year end to a…

A: Solution: Small error in inventory valuation would cause a complete error in a financial statement.…

Q: For all problems, assume the perpetual inventory: system is used unless stated otherwise. Accounting…

A: Prepare the journal entries.

Q: Uptown Department Store uses the perpetual inventory system and has ending inventory with a…

A: As per the LIFO method, the ending inventory is measured at cost or replacement cost whichever is…

Q: Bramble Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $216,170,800 at…

A: Perpetual inventory system, also regarded as continuous inventory that states the inventory system,…

Q: Tamarisk Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,116,400 at…

A: Allowance to reduce inventory to market =   Ending inventory at cost - Ending inventory at…

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.