FIND:

Counted inventory and determined that 20 units were on hand.

Entry 6. Record a journal entry that shows all goods initially on hand at the beginning of the period (in the Inventory account) and all goods bought during the period (in the purchases account) as having been sold by the end of the period.

Entry 7. Record a journal entry that adjusts the accounting records to show that 20 units of inventory actually are still on hand (and should be recorded in the Inventory account) at the end of the period.

The following Information applies to the questions displayed below.] Sigfusson Supplies reported beginning inventory of 120 units, for a total cost of $4,800. The company had the following transactions during the month: Jan. 6 Sold 50 shovels on account at a selling price of $50 per unit. 9 Bought 40 shovels on account at a selling price of $40 per unit. 11 Sold 40 shovels on account at a cost of $55 per unit. 19 Sold 50 shovels on account at a selling price of $60 per unit. 27 Bought 40 shovels on account at a cost of $40 per unit. 31 Counted inventory and determined that 20 units were on hand