Question : 1) The adjusting entry to record inventory shrinkage would include : 1212633

 

1) The adjusting entry to record inventory shrinkage would include a debit to the cost of goods sold account in a periodic inventory system.

2) In a periodic inventory system, the closing entries include a debit to the Inventory account in an amount that equals the ending inventory, and a credit to the Inventory account in an amount that equals the beginning inventory.

 

3) Which accounts are affected in the closing process under a periodic inventory system?

A) Gross Margin and Cost of Goods Sold

B) Cost of Goods Sold, Sales Returns and Allowances, and Sales Discounts

C) Gross Margin, Sales Returns and Allowances, and Sales Discounts

D) operating expenses, Sales Revenue, and Purchases

 

4) Under a periodic inventory system, which accounts would be closed to income summary with credits?

A) Sales Returns and Allowances, Sales Revenue, and Inventory

B) Sales Discounts, Sales Returns and Allowances, and Purchases

C) Sales Revenue and Cost of Goods Sold

D) Sales Returns and Allowances and Sales Revenue

Table 5-3

Sales revenue

$750,000

Interest revenue

18,000

Freight in   

44,000

Beginning inventory

75,000

Purchases discounts

20,000

Sales returns and allowances

44,000

Operating expenses 

99,000

Interest expense

15,000

Ending inventory

72,000

Purchases 

415,000

Sales discounts

25,000

William Browning, Withdrawals  

61,000

Purchase returns and allowances

36,000

 

5) Refer to Table 5-3. Net sales is:

A) $681,000.

B) $750,000.

C) $725,000.

D) $706,000.

6) In a periodic inventory system, the closing process includes crediting the following accounts to bring their balances to zero:

A) Cost of Goods Sold and Freight In.

B) Purchases and Freight In.

C) Purchase Discounts and Sales Discounts.

D) Purchase Returns and Allowances and Purchase Discounts.

 

7) In a periodic inventory system, the closing process includes:

A) debiting Purchases.

B) crediting Purchase Returns and Allowances.

C) debiting Sales Discounts.

D) debiting Inventory for the ending balance.

 

Match the following.

 

A) Cost of Goods Sold

 

8) The account used to offset the adjustment to inventory to the actual amount on hand

 

9) Following is a random list of some of the accounts and their December 31, 2014, balances for Carmen & Company. Carmen & Company uses a periodic inventory system and all account balances are normal.

 

Purchases  $320,000

Sales revenue  460,000

Interest revenue   23,000

Salary expense45,000

Freight in      17,000

Purchase discounts 31,000

Sales returns and allowances35,000

Interest expense 18,000

Delivery expense  24,000

Sales discounts 27,000

Insurance expense   16,000

Purchase returns and allowances  46,000

B.J. Carmen, Capital 30,000

Utilities expense14,000

Amortization expense-equipment10,000

B.J. Carmen, Withdrawals 15,000

 

The beginning and ending amounts for inventory are $58,000 and $65,000, respectively.

 

Prepare the closing entries for Carmen & Company.

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more