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Write the Adjusting Journal Entries for the transactions. I've already completed the normal journal entries. Below you will find the information needed. Thanks Company Background
Write the Adjusting Journal Entries for the transactions. I've already completed the normal journal entries. Below you will find the information needed. Thanks
Company Background and Accounting Policies: Grandpa's Cough Inc. (GCI) sells a uniquely flavored cough syrup either wholesale or through its own storefront. GCl opened its doors November 2016, and closes its books each month. Cases contain 24 bottles. Each bottle costs the company $2 to make and the company sells bottles for $4.5. Each case is sold for $90 the cost to ship is paid for by the customer. Customers pay on the last day of their terms unless otherwise noted. Gene has a revolving line of credit with a local bank, if the balance drops below $15,000 then Gene will draw money against the line of credit in $5,000 increments, until the balance is above $25,000. Simple interest rate on the line is 3.4%. Interest accrues daily (N/365) and paid at the end of each month. The company maintains inventory at $72,000, and will purchase materials every time the inventory drops below that amount in $4,000 increments, vendor pays shipping. Terms are N/15. Gene pays all bills on the last day of the terms Round all answers to the nearest dollarStep by Step Solution
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