Question

Exercise 5-8 Presented below is information related to Garland Co. for the month of January 2019. $21,600 Ending inventory per perpetual records Ending inventory actually on hand Cost of goods sold Freight-out 21,000 218,000 7,000 Insurance expense Rent expense Salaries and wages expense Sales discounts Sales returns and allowances Sales revenue $12,000 20,000 55,000 10,000 13,000 380,000 Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do not i account titles and enter "O" for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

General Journal	Debit	Credit
Cost of goods sold (21600-21000)	600
Inventory		600
(To record adjusting entry)
Sales revenue	380000
Income summary		380000
(To close credit balances)
Income summary	335600
Sale discount		10000
Sales return and allowance		13000
Cost of goods sold		218600
Freight out		7000
Insurance expense		12000
Rent expense		20000
Salaries and wages expense		55000
(To close debit balances)
Income summary	44400
Retained earnings		44400
(To close net income)