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Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows:
110 | Cash | $ 83,600 |
112 | Accounts Receivable | 233,900 |
115 | Merchandise Inventory | 624,400 |
116 | Estimated Returns Inventory | 28,000 |
117 | Prepaid Insurance | 16,800 |
118 | Store Supplies | 11,400 |
123 | Store Equipment | 569,500 |
124 | Accumulated Depreciation-Store Equipment | 56,700 |
210 | Accounts Payable | 96,600 |
211 | Salaries Payable | |
212 | Customers Refunds Payable | 50,000 |
310 | Common Stock | 100,000 |
311 | Retained Earnings | 585,300 |
312 | Dividends | 135,000 |
313 | Income Summary | |
410 | Sales | 5,069,000 |
510 | Cost of Merchandise Sold | 2,823,000 |
520 | Sales Salaries Expense | 664,800 |
521 | Advertising Expense | 281,000 |
522 | Depreciation Expense | |
523 | Store Supplies Expense | |
529 | Miscellaneous Selling Expense | 12,600 |
530 | Office Salaries Expense | 382,100 |
531 | Rent Expense | 83,700 |
532 | Insurance Expense | |
539 | Miscellaneous Administrative Expense |
At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
Merchandise inventory on May 31, $570,000 | |||||||||||||||||||
Insurance expired during the year, $12,000 | |||||||||||||||||||
Store supplies on hand on May 31, $4,000 | |||||||||||||||||||
Depreciation for the current year, $14,000 | |||||||||||||||||||
Accrued salaries on May 31:
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The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold.At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
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1. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* | |
2. Post the adjusting entries |
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