Sscenario:

You have been hired as an accountant by Russell Industries on December $31,2024.$ Upon arriving on your first day, you are handed a trial balance by the CEO.

$\frac{4}{4}$

$84\%$

$$

After reviewing the trial balance and other accounting records you discover the following:

a$)$ The company uses a periodic inventory system with an average cost flow method. A count of inventory on December ${31}^{4t},2024$ showed $97,000$ units on hand. The opening inventory on hand at January $1^{st,},2024$ was $107,000$ units. Russell Industries only sells one product. is a summary of the inventory purchases for the year ended December $31,2024$

$\backslash$table$[[$Date$,$Units,Cost$/$Unit$],[$Jan $15,66,000,4\mathrm{.}44],[$Mar $22,14,000,4\mathrm{.}24],[$July $19,106,000,4\mathrm{.}16],[$Sept $30,35,640,4\mathrm{.}00],[$Nov $16,82,000,4\mathrm{.}44]]$

Required:

Prepare any necessary adjusting entries.

Calculate the value of ending inventory and cost of goods sold.

Prepare a bank reconciliation at December $31,2024$

Prepare Russell Industries income statement and statement of changes in equity for the $31,2024.$

Prepare the closing entries for the year ended December $31,2024.$

Prepare the post$-$closing trial balance.

In April $2025,$ was discovered that $5,000$ units of inventory included in the ending invento balance was damaged at December ${31}^{st}$ and not saleable. Discuss how this error would im