HW BE Ch. 5

Hahn Flooring Company uses a perpetual inventory system. a. The inventory account has a balance of $677,500, while physical inventory indicates that $664,400 of merchandise is on hand. Assume any shrinkage is a normal amount. b. Sales refunds and allowances of $94,000 and merchandise returns of $49,550 are estimated for the current year's sales. Chart of Accounts 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense Journalize the December 31 adjusting entries. JOURNAL