a)
To mention: The alternative source for the adjustment.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the
b)
To mention: The alternative source for the adjustment.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.
c)
To mention: The alternative source for the adjustment.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.
d)
To mention: The alternative source for the adjustment.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.
e)
To mention: The alternative source for the adjustment.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.
f)
To mention: The alternative source for the adjustment.
Introduction:
General ledger/business reporting process (GL/BR):
General ledger can be defined as the central data repository needed to develop the business reports. The business reports and other forms of information generation are all derived from the general ledger data repository. The GL/BR process is considered as a central activity of the accounting information systems.
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Accounting Information Systems
- The account used to adjust the perpetual inventory records when a difference exists between the physical count and the amount in the perpetual inventory records is called a. Inventory Short and Over. b. Estimated Returns Inventory. c. Inventory Shrinkage. d. Merchandise Inventoryarrow_forwardA list of errors is shown below: Show the effects of the errors on the indicated balance sheet and income statement items. Errors Cost ofGoods Sold RetainedEarnings Year-EndWorkingCapital Ending inventory is overstated Beginning inventory is overstated Ending inventory is understated Beginning inventory is understated Purchases is overstated (recorded twice) Purchases is understated (not recorded)arrow_forwardMake a comparison between periodic and perpetual inventory systems and explain under which conditions each system should be used, you can support your answer by examples. Briefly explain the methods used for valuing accounts receivables.arrow_forward
- Required: 1. Calculate ending inventory using the lower of cost and net realizable value. 2. Record any necessary adjustment to inventory. 3. Determine the impact of the adjustment in the financial statements.( Balance Sheet&Income statement)arrow_forwardRSA Corporation had the following items in inventory as at December 31, 2023: Item No. Quantity 100 A1 B4 C2 D3 120 140 160 Unit Cost $3.00 2.00 8.00 7.00 NRV $3.30 1.90 9.00 6.80 Assume that RSA uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2023, was $3,245 in total.arrow_forwardApply a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.arrow_forward
- Where there is a reversal of a previous inventory write-down, the entry would involve a _______to the inventory account and a ___________to an income account labelled ‘Reversal of previous inventory write-down’ or its equivalent. deletion; creation credit; debit None of the given options are correct debit; creditarrow_forwardDo you agree with the following statements? Express your opinion on each statement. An inventory error that causes an understatement (or overstatement) for net income in one accounting period, if not corrected, will cause an overstatement (or understatement) in the next. Since an understatement (overstatement) of one period offsets the overstatement (understatement) in the next, such errors are said to correct themselves. Market usually means replacement cost of inventory when applied in the LCM. Cost of goods available for sale equals ending inventory plus cost of sales.arrow_forwardDo you agree with the following statements? Express your opinion on each statement. An inventory error that causes an understatement (or overstatement) for net income in one accounting period, if not corrected, will cause an overstatement (or understatement) in the next. Since an understatement (overstatement) of one period offsets the overstatement (understatement) in the next, such errors as said to correct themselves. Market usually means replacement cost of inventory when applied in the LMC. Cost of goods available for sale equals the inventory plus cost of sales.arrow_forward
- Which of the following is incorrect about the perpetual inventory method? a. purchases are recorded as debit to inventory accountb. the entry to record a sale includes a debit to cost of goods sold and a credit to inventoryc. after a physical inventory count, inventory is credited for any missing inventory.d. purchase returns are recorded by debiting accounts payable and crediting purchase returns and allowancesarrow_forwardWhich of the following accounts does not belong in the purchases and disbursement cycle? Group of answer choices a.Prepayments b.Accounts payable c.Sales returns and allowances d.Fixed assetsarrow_forwardWhen a company that uses the periodic inventory system wants to remove beginning estimated returns inventory, which of the following accounts is debited? a.Estimated Returns Inventory b.Cost of Goods Sold c.Customer Refunds Payable d.Income Summaryarrow_forward
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