Question
Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise
Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system).
Merchandise inventory$43,800
Sales returns and allowances$5,300T.
Nix, Capital127,300
Cost of goods sold108,600T.
Nix, Withdrawals7,000
Depreciation expense11,500
Sales160,600
Salaries expense38,500
Sales discounts4,100
Miscellaneous expenses5,000
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $42,050.
Which one are the journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from?
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