Merchandise Inventory Adjustments: Periodic Inventory system with Sales Returns and Allowances The following partial worksheet is taken from Karen’s Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $60,000. Karen estimates that customers will be granted $15,400 in refunds next year for merchandise sold this year. The estimated cost of the returned inventory is $9,000. Complete the Adjustments columns for Merchandise Inventory and related accounts and extend all accounts to the Adjusted Trial Balance columns.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Merchandise Inventory Adjustments: Periodic Inventory system with Sales Returns and Allowances

The following partial worksheet is taken from Karen’s Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $60,000. Karen estimates that customers will be granted $15,400 in refunds next year for merchandise sold this year. The estimated cost of the returned inventory is $9,000.

Complete the Adjustments columns for Merchandise Inventory and related accounts and extend all accounts to the Adjusted Trial Balance columns.

Karen's Gift Shop
End-of-Period Spreadsheet (Partial)
For Year Ended December 31, 20--
TRIAL BALANCE
ADJUSTMENTS
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
Merchandise Inventory
55,000.00
Estimated Returns Inventory
11,000.00
Customer Refunds Payable
12,000.00
Income Summary
Sales
250,000.00
Sales Returns & Allowances
18,000.00
Purchases
199,000.00
Purchases Returns & Allowances
3,400.00
Purchases Discounts
2,800.00
Freight-In
1,300.00
Transcribed Image Text:Karen's Gift Shop End-of-Period Spreadsheet (Partial) For Year Ended December 31, 20-- TRIAL BALANCE ADJUSTMENTS ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT Merchandise Inventory 55,000.00 Estimated Returns Inventory 11,000.00 Customer Refunds Payable 12,000.00 Income Summary Sales 250,000.00 Sales Returns & Allowances 18,000.00 Purchases 199,000.00 Purchases Returns & Allowances 3,400.00 Purchases Discounts 2,800.00 Freight-In 1,300.00
- Prepare the cost of goods sold section from the spreadsheet.
Karen's Gift Shop
Income Statement
For Year Ended December 31, 20--
Cost of goods sold:
2$
$
Cost of goods sold
Transcribed Image Text:- Prepare the cost of goods sold section from the spreadsheet. Karen's Gift Shop Income Statement For Year Ended December 31, 20-- Cost of goods sold: 2$ $ Cost of goods sold
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