Presented below is information related to Garland Co. for the month of January 2020. Ending inventory per

Question:

Presented below is information related to Garland Co. for the month of January 2020.

Ending inventory per perpetual records ................................................   $ 21,600
Insurance expense ...................................................................................    $ 12,000
Rent expense ............................................................................................       20,000
Ending inventory actually on hand ........................................................       21,000

Salaries and wages expense ...................................................................      55,000
Sales discounts .........................................................................................      10,000
Cost of goods sold ...................................................................................    218,000

Sales returns and allowances ................................................................      13,000

Freight-out ...............................................................................................         7,000

Sales revenue ..........................................................................................    380,000


Instructions

a. Prepare the necessary adjusting entry for inventory.

b. Prepare the necessary closing entries.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-1119392132

3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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