Merchandise Inventory Adjustments Periodic Inventory system with Sales Returns and Allowances The following partial work sheet is taken from Karens Gift Shop for the year ended December 31, 20 The ending merchandise inventory is $60,000 Karen estimates that customers will be granted $15,200 in refunds next year for merchandise sold this year The estimated cost of the returned inventory is $9,000 Question Content Area 1 Complete the Adjustments columns for Merchandise Inventory and related account 2 Extend all accounts to the Adjusted Trial Balance columns Karens Gift Shop End of Period Spreadsheet (Partial) For Year Ended December 31, 20 ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Merchandise Inventory 51,000 00 fill in the blank f54540fd2057fea 2 fill in the blank f54540fd2057fea 3 fill in the blank f54540fd2057fea 4 Estimated Returns Inventory 10,000 00 fill in the blank f54540fd2057fea 5 fill in the blank f54540fd2057fea 6 fill in the blank f54540fd2057fea 7 fill in the blank f54540fd2057fea 8 Customer Refunds Payable 12,000 00 fill in the blank f54540fd2057fea 9 fill in the blank f54540fd2057fea 10 fill in the blank f54540fd2057fea 11 fill in the blank f54540fd2057fea 12 Income Summary fill in the blank f54540fd2057fea 13 fill in the blank f54540fd2057fea 14 fill in the blank f54540fd2057fea 15 fill in the blank f54540fd2057fea 16 fill in the blank f54540fd2057fea 17 fill in the blank f54540fd2057fea 18 fill in the blank f54540fd2057fea 19 fill in the blank f54540fd2057fea 20 Sales 276,000 00 fill in the blank f54540fd2057fea 21 fill in the blank f54540fd2057fea 22 fill in the blank f54540fd2057fea 23 fill in the blank f54540fd2057fea 24 Sales Returns Allowances 17,000 00 fill in the blank f54540fd2057fea 25 fill in the blank f54540fd2057fea 26 fill in the blank f54540fd2057fea 27 fill in the blank f54540fd2057fea 28 Purchases 198,000 00 fill in the blank f54540fd2057fea 29 fill in the blank f54540fd2057fea 30 fill in the blank f54540fd2057fea 31 fill in the blank f54540fd2057fea 32 Purchases Returns Allowances 3,200 00 fill in the blank f54540fd2057fea 33 fill in the blank f54540fd2057fea 34 fill in the blank f54540fd2057fea 35 fill in the blank f54540fd2057fea 36 Purchases Discounts 2,500 00 fill in the blank f54540fd2057fea 37 fill in the blank f54540fd2057fea 38 fill in the blank f54540fd2057fea 39 fill in the blank f54540fd2057fea 40 Freight In 1,100 00 3 Prepare the cost of goods sold section from the spreadsheet Cost of goods sold Merchandise inventory, December 31Merchandise inventory, January 1Purchases discountsPurchases returns and allowances $ Select Estimated returns inventory, January 1Estimated returns inventory, December 31Purchases discountsPurchases returns and allowances Select $ Select Freight inMerchandise inventory, December 31Merchandise inventory, January 1Purchases $ Select Less Freight inLess Merchandise inventory, December 31Less Merchandise inventory, January 1Less Purchases returns and allowances $ Select Less Freight inLess Goods available for saleLess Merchandise inventory, December 31Less Purchases discounts Select Select Cost of goods available for saleEstimated returns inventory, January 31Net purchasesMerchandise inventory, January 31 $ Select Add Freight inAdd Merchandise inventory, December 31Add Purchases returns and allowancesAdd Purchases Select Cost of goods available for saleCost of goods purchasedPurchases discountsPurchases returns and allowances Select Cost of goods available for saleCost of goods purchasedMerchandise inventory, January 1Purchases discounts $ Select Less Freight inLess Merchandise inventory, December 31Less Merchandise inventory, January 1Less Purchases returns and allowances $ Select Less Freight inLess Estimated returns inventory, December 31Less Estimated returns inventory, January 1Less Purchases returns and allowances Select Select Cost of goods sold $fill in the blank 8104fdfc7fd001d 26

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Merchandise Inventory Adjustments: Periodic Inventory system with Sales Returns and Allowances The following partial work sheet is taken from Karens Gift Shop for the year

Merchandise Inventory Adjustments: Periodic Inventory system with Sales Returns and Allowances The following partial work sheet is taken from Karens Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $60,000. Karen estimates that customers will be granted $15,200 in refunds next year for merchandise sold this year. The estimated cost of the returned inventory is $9,000. Question Content Area

1. Complete the Adjustments columns for Merchandise Inventory and related account

2. Extend all accounts to the Adjusted Trial Balance columns.

Karens Gift Shop End-of-Period Spreadsheet (Partial) For Year Ended December 31, 20--
ACCOUNT TITLE	TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Merchandise Inventory	51,000.00			fill in the blank f54540fd2057fea_2	fill in the blank f54540fd2057fea_3	fill in the blank f54540fd2057fea_4
Estimated Returns Inventory	10,000.00		fill in the blank f54540fd2057fea_5	fill in the blank f54540fd2057fea_6	fill in the blank f54540fd2057fea_7	fill in the blank f54540fd2057fea_8
Customer Refunds Payable		12,000.00	fill in the blank f54540fd2057fea_9	fill in the blank f54540fd2057fea_10	fill in the blank f54540fd2057fea_11	fill in the blank f54540fd2057fea_12
Income Summary			fill in the blank f54540fd2057fea_13	fill in the blank f54540fd2057fea_14	fill in the blank f54540fd2057fea_15	fill in the blank f54540fd2057fea_16
			fill in the blank f54540fd2057fea_17	fill in the blank f54540fd2057fea_18	fill in the blank f54540fd2057fea_19	fill in the blank f54540fd2057fea_20
Sales		276,000.00	fill in the blank f54540fd2057fea_21	fill in the blank f54540fd2057fea_22	fill in the blank f54540fd2057fea_23	fill in the blank f54540fd2057fea_24
Sales Returns & Allowances	17,000.00		fill in the blank f54540fd2057fea_25	fill in the blank f54540fd2057fea_26	fill in the blank f54540fd2057fea_27	fill in the blank f54540fd2057fea_28
Purchases	198,000.00		fill in the blank f54540fd2057fea_29	fill in the blank f54540fd2057fea_30	fill in the blank f54540fd2057fea_31	fill in the blank f54540fd2057fea_32
Purchases Returns & Allowances		3,200.00	fill in the blank f54540fd2057fea_33	fill in the blank f54540fd2057fea_34	fill in the blank f54540fd2057fea_35	fill in the blank f54540fd2057fea_36
Purchases Discounts		2,500.00	fill in the blank f54540fd2057fea_37	fill in the blank f54540fd2057fea_38	fill in the blank f54540fd2057fea_39	fill in the blank f54540fd2057fea_40
Freight-In	1,100.00

3. Prepare the cost of goods sold section from the spreadsheet.

Cost of goods sold:
Merchandise inventory, December 31Merchandise inventory, January 1Purchases discountsPurchases returns and allowances		$- Select -
Estimated returns inventory, January 1Estimated returns inventory, December 31Purchases discountsPurchases returns and allowances		- Select -	$- Select -
Freight-inMerchandise inventory, December 31Merchandise inventory, January 1Purchases		$- Select -
Less: Freight-inLess: Merchandise inventory, December 31Less: Merchandise inventory, January 1Less: Purchases returns and allowances	$- Select -
Less: Freight-inLess: Goods available for saleLess: Merchandise inventory, December 31Less: Purchases discounts	- Select -	- Select -
Cost of goods available for saleEstimated returns inventory, January 31Net purchasesMerchandise inventory, January 31		$- Select -
Add: Freight-inAdd: Merchandise inventory, December 31Add: Purchases returns and allowancesAdd: Purchases		- Select -
Cost of goods available for saleCost of goods purchasedPurchases discountsPurchases returns and allowances			- Select -
Cost of goods available for saleCost of goods purchasedMerchandise inventory, January 1Purchases discounts			$- Select -
Less: Freight-inLess: Merchandise inventory, December 31Less: Merchandise inventory, January 1Less: Purchases returns and allowances		$- Select -
Less: Freight-inLess: Estimated returns inventory, December 31Less: Estimated returns inventory, January 1Less: Purchases returns and allowances		- Select -	- Select -
Cost of goods sold				$fill in the blank 8104fdfc7fd001d_26