Question

(The following information applies to the questions displayed below.) Nix"It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal bal (Nix"It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 47,300 134,300 7,000 164,100 4,800 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 4,600 110, 700 12,200 42,000 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $45,200 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry fo shrinkage from OS 4-9. (The solution from OS 4-9 is required to complete this question.) Answer is not complete. No Date General Journal Credit 1 July 31 Sales Debit 176.400 < Prev SN of 4 Next >

Answer 1

Answer
	General Journal	Debit	Credit
1	Sales	$     164,100
	Income Summary		$     164,100
2	Cost of goods sold (47300-45200)	$         2,100
	Merchandise Inventory		$         2,100
3	Income Summary	$     181,400
	Sales discounts		$         4,800
	Sales returns and allowances		$         4,600
	Depreciation expense		$       12,200
	Salaries expense		$       42,000
	Miscellaneous expenses		$         5,000
	Cost of goods sold (110700+2100)		$     112,800
4	Retained Earnings	$         7,000
	Dividends		$         7,000
5	Retained Earnings	$       17,300
	Income Summary		$       17,300