5-2

Hahn Flooring Company uses a perpetual inventory system.

A.	Sales returns of $97,500 and merchandise returns of $44,150 are estimated for the current year's sales.
B.	The inventory account has a balance of $652,350, while physical inventory indicates that $641,900 of merchandise is on hand. Journalize the December 31 adjusting entries based on the above transactions. Assume that the inventory shrinkage is a normal amount. Refer to the Chart of Accounts for exact wording of account titles.

3. BE.5-06.BLANKSHEETALGO (Algorithmic) Hahn Flcoring Company uses a ptul ietery system A. Sales relurne of 597,500 ard merchandee reluis of $44,150 re esmaled for the current year's salee. B. Tha inventory account hesa balance of $652.350. 'stile nhrsealinwentarindeenes 'hat $641.900 ofmenhancige is on hand. Jourmanze the Decentber 3t ad uct ng entrec bazed a!? the anore tranzact ons assure t ar th" wer or shm age norma amount Re er rohe Cher of Accounts or exast v ord ng of account t t es. Chart of Acounts CHART OF ACCOUNTS Hahn Flooring Company General Ledger ASSETS REVENUE 110 Cash 120 Accounts Recivabe 125 Notes Recevele 130 Ientory 131 Estimated Returns Inventoy 40 Office Suppics 141 Store Supplies 142 Prepsid Insurance 180 Land 12 Store Eqipment 410 Sales 610 Rent Reverue EXPENSES 510 Cost of Coocs Sak 521 Delivery Expense 522 Adverlisng Expense 524 Deprecation Expense-Store Equipment 625 Dearaniatian Expanse Cifice Equipmert 528 Selaries Expense 3 Accumulated Depreciation Store Equiprrent 4 Cffice Equipmert 533 Insurance Expense 185 Accuulated Depreciation Office Equipment 34 Store 5upplies Expense 535 Otfice Supplias Expense 538 Credt Card Experse 530 Miscelbneous Expense 710 Interest Expense LIABILITIES 210 Acxounte Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Retuds Payable 220 Unamed Rent 221 Nates Paysble EQUITY 1 Cammon Sock 311 Retained Eamings 312 Dividends 313 Income Summary loumal jour al ze tne ecenter 31 e at ng entres Assure that the n entory s n ag.a nonna, amount Refer ro Cner of Accounts to exact word ng af eccount t ties OURNAL ACCCUNTING EQUATION DATE POST. REF DEBIT CRECIT ASSETS LULITES EQUITY Adjusting Entries