Exercise 5-7 (Part Level Submission) Swifty Corporation had the following account balances at year-end: Cost of Goods Sold $61,350; Inventory $17,960; Operating Expenses $32,910; Sales Revenue $124,050; Sales Discounts $1,490; and Sales Returns and Allowances $2,110. A physical count of inventory determines that merchandise inventory on hand is $12,520.

(a)

	Your answer is correct.

Prepare the adjusting entry necessary as a result of the physical count. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

SHOW LIST OF ACCOUNTS

SHOW ANSWER

LINK TO TEXT

By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Attempts: 2 of 5 used

(b)

	Your answer is partially correct. Try again.

Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To close accounts with credit balances)
(To close accounts with debit balances)
(To close net income / (loss))