Presented is information related to Taylor Co. for the month of January 2006.

Instructions

(a) Prepare the necessary adjusting entry for inventory.

(b) Prepare the necessary closing entries.

Transcribed Image Text:

Ending inventory per perpetual records Salary expense $ 61,000 $ 21.600 Sales discounts 10.000 Ending inventory actually on hand Sales returns and allowances 13,000 21,000 Sales 350,000 Cost of goods sold 208.000 Freight-out 7.000 Insurance expense 12.000 Rent expense 20,000