Question

AutoSave HW 6-1 Home Insert Draw Page Layout Formulas Data Review View Developer Calibri (Body) A A 11 99 Wrap Text General Paste BIU A. Merge & Center $% f K17 x A C F G H Exercise 4 1 Apartial trial balance is presented below The ending physical count ofinventory is $96. Prepare the 2 adjusting entries required under the periodic 2 inventory method 4 Trial Balance Debit Credit Merchandise Inventory 6 120 7 Sales 40 Sales Discounts 18 Sales Returns and Allowances 45 10 Purchases 600 11 Purchase Discounts 12 12 Purchase Retums and Allowances 24 13 Transportation-in 36 14 15 GENERAL 16 POST 17 Account/Description Debit REF. Credit 18 19 20 21 22 23 24 25 27 Exercise 5 Under the perpetual inventory method, prepare the adjusting entry for inventoryif ending merchandise inventory is $101,000 and the physical count of inventery is $96.000 GENERAL POST REF AccountDescription Debit Credit

Answer 1

Exercise 4 : Adjusting entry: Periodic Inventory

Date	Account	Debit	Credit
		$	$
Dec 31	Merchandise Inventory ( Ending )	96
	Cost of Goods Sold	624
	Purchase Returns and Allowances	24
	Purchase Discounts	12
	Purchases		600
	Transportation In		36
	Merchandise Inventory ( Beginning )		120

Exercise 5 : Adjusting entry: Perpetual Inventory

Date	Account	Debit	Credit
		$	$
Dec 31	Cost of Goods Sold	5,000
	Merchandise Inventory		5,000