ABC usos a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A physical count was taken on December 31, 2021, and the inventory on-hand at that time totaled $50,000, which reflects historical cost. Record the adjusting entry for properly recognizing 2021 Cost of Goods Sold. Hint: This was the first year of operations, so beginning inventory balance is zero. Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and not realizable value at a total inventory level. A review of inventory data further indicated that the current retail sales value of the ending inventory is $45,000 and estimated costs of completion and shipping is 10% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending inventory using the Loss and Allowance methodology. For Income Statement presentation purposes, be sure to use the Loss Method for accounting for adjustments of inventory to market value Cash 393,125 Accounts receivable 300,000 Allowance for doubtful accounts Inventory Allowance to Reduce Inventory to NRV Purchases 350,000 Prepaid insurance 4,167 Land 88,000 Building 500,000 Accumulated depreciation building 16,570 I Equipment 260,000 Accumulated depreciation equipment 108,330 2. What is your subject? 100,000 200,000 Delivery Trucks Accumulated depreciation delivery trucks Investment in XYZ Company Stock Patent Accounts payable Notes payable Income taxes payable Unearned rent revenue Bonds Payable Premium on Bonds Payable Common stock PIC in Excess of Par-Common Stock Retained earnings Treasury stock Dividends Sales Revenue Unrealized Holding Losses/Gains on Trading Securities-NI Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense 116,184 100,000 47,667 15,000 1,000,000 81,105 125,000 40,000 50,000 28,000 1,000.880 9,240 62,150 54,083 124,900 33,571 45,833 2. What is your subject? Unearned rent revenue Bonds Payable Premium on Bonds Payable Common stock PIC In Excess of Par-Common Stock Retained earnings Treasury stock Dividends 15,000 1,000,000 81,105 125,000 40,000 50,000 28,000 1,000,880 Sales Revenue Unrealized Holding Losses/Gains on Trading Securities-NI Advertising expense Wages expense Office expense Depreciation expense Utilities expense Insurance expense Income taxes expense 9,240 62,150 54,083 124,900 33,571 45,833 47,667 2,650,736 $ $ 2,650,736 2 What is your subiect