Practices in Accounting (Acc 227) Comprehensive Problem 2 Part 4 and 6:

4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6.

a.		Inventory on May 31				$570,000
c.		Store supplies on hand on May 31				4,000

f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. 6. Journalize the adjusting entries.

""This is my question...Please explain these 2 journal entries and how you got this answer.""

May 31	Cost of Goods Sold	13950
	Inventory		13950
May 31	Store Supplies Expense	9800
	Store Supplies		9800

	Inventory										115
			Post						Balance
	5/30						47,000		584,350

Cost of Goods Sold

510

Post

Balance

5/1

Balance

2,823,000

	Store Supplies										118
			Post						Balance
	5/29				2,400				13,800

Store supplies exp was 0.