Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting entries based upon the following: The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on hand. Assume any shrinkage is a normal amount. Sales returns of $125,000 and merchandise returns of $80,000 are estimated for the current year’s sales.

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

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: Use a tabular summary to record the following transactions for Sunland Company using a perpetual…

A: Accounting Equation is calculated using following equation -Assets = Liabilities + EquityEvery…

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A:

Q: Home Improvement Stores, Inc., uses a periodic inventory system and the reta inventory method to…

A: The LIFO retail strategy is in line with how shops normally sell their products, which involves…

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: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: When preparing its quarterly financial statements, Pace Company uses the gross margin method to…

A: The cost of goods sold (CoGS) would be computed as follows: - CoGS = Sales × 1 - Gross Margin…

Q: Sarasota Corp. uses a perpetual inventory system. The company had the following inventory…

A: Introduction: Journal entry is used to document a commercial transaction in a corporation's…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Under FIFO method, using perpetual inventory value of ending inventory is calculated at the end of…

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: Use a tabular summary to record the following transactions for Wildhorse Company using a perpetual…

A: Detailed explanation:a. Sales on accountIncrease in asset,  accounts receivable,  976000Increase in…

Q: Newell Company used a perpetual inventory system and completed the following transactions in…

A: Cash Receipt :— It is the net cash collection from customer against sale of goods.  It is sales…

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: 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: ournalize the following inventory merchandise transactions, assuming that the company uses the…

A: Perpetual inventory system is an inventory system which records all purchase and sales in the…

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: 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: Cost Retail Beginning inventory $ 47,000   $ 62,000   Net purchases   10,480     32,800   Net…

A: Under retail inventory method to estimate average cost  of ending inventory and cost of goods sold…

Q: a ccompany purchased $1,800 of merchandise on July 5, with terms 2/10, n/30. On july 7. it returned…

A: Discount on payment = (Purchases - purchase return) x discount rate = (1800-200)*2% = $32

Q: Metlock Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: The gross profit is calculated as the difference between sales and cost of goods sold. The ending…

Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…

A: Cost: This column represents the cost of inventory items.Retail: This column represents the retail…

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: The first things acquired are presumed to be the first goods sold in the first in, first out (FIFO)…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, 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: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…

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: 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: 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: Jackie’s Parts Shop recorded the following purchases and sales during the past year (see attached…

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

Q: San Lorenzo General Store uses a periodic Inventory system and the retail Inventory method to…

A: Final answer  CostRetailCost -to- retail ratio Beginning inventory$40,000$55,000  Net purchases$…

Q: Marigold Corp. uses a perpetual inventory system. The company had the following inventory…

A: When a business purchases products or services on credit and promises to pay the supplier or vendor…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

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: A company that uses the perpetual inventory system purchases inventory for P65,000 on account, with…

A: Under perpetual inventory system, discount under terms is accounted for as adjusting to Inventory…

Q: Blossom Corp. uses a perpetual inventory system. The company had the following inventory…

A: A periodic inventory system is a method of tracking inventory levels where a business does not…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: It is the stock held for sale to customers. The inventory comprises of raw materials, work in…

Q: Perpetual FIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of…

A: FIFO Method-First-In, First-Out Under this method , oldest products  of a company's inventory  is…

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: 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…

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.