Adjustments for a Merchandising Business: Perpetual Inventory System with Sales Returns and Allowances A partial Trial Balance for Curless Company as of December 31, 20-- is shown. Curless Company Partial Trial Balance For Year Ended December 31, 20-- ACCOUNT TITLE DEBIT BALANCE CREDIT BALANCE Merchandise Inventory 151,000.00 Estimated Returns Inventory 800.00 Customer Refunds Payable 450.00 Sales 426,000.00 Sales Returns and Allowances 19,000.00 Cost of Goods Sold 288,000.00 Curless has made the following estimates for next year: • Sales made this year of $9,800 will be returned next year and customers will be granted full refunds. • The estimated cost of the inventory sold this year and expected to be returned by customers next year is $5,900. Open T accounts and enter the balances for the above accounts. Make appropriate adjustments to the T accounts. For grading purposes use the labels shown. TB Trial balance (beginning balance) ATB Adjusted trial balance (ending balance) (1) Adjust the liability for refunds to the current estimate. (2) Adjust Estimated Returns Inventory to the current estimate.
Adjustments for a Merchandising Business: Perpetual Inventory System with Sales Returns and Allowances A partial Trial Balance for Curless Company as of December 31, 20-- is shown. Curless Company Partial Trial Balance For Year Ended December 31, 20-- ACCOUNT TITLE DEBIT BALANCE CREDIT BALANCE Merchandise Inventory 151,000.00 Estimated Returns Inventory 800.00 Customer Refunds Payable 450.00 Sales 426,000.00 Sales Returns and Allowances 19,000.00 Cost of Goods Sold 288,000.00 Curless has made the following estimates for next year: • Sales made this year of $9,800 will be returned next year and customers will be granted full refunds. • The estimated cost of the inventory sold this year and expected to be returned by customers next year is $5,900. Open T accounts and enter the balances for the above accounts. Make appropriate adjustments to the T accounts. For grading purposes use the labels shown. TB Trial balance (beginning balance) ATB Adjusted trial balance (ending balance) (1) Adjust the liability for refunds to the current estimate. (2) Adjust Estimated Returns Inventory to the current estimate.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.3E: Perpetual and Periodic Inventory Systems Following is a partial list of account balances for two...
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Question
Assets
Merchandise Inventory
______ __________
Estimated Returns Inventory
________ _____________
________ ____________
________ ____________
Liabilities
Customer Refunds Payable
___________ ___________
___________ ___________
___________ ___________
Owner's Equity
Revenues
Sales
___________ ____________
Sales Returns and Allowances
__________ _____________
_________ _____________
_________ _____________
Expenses
Cost of Goods Sold
__________ _____________
_________ ______________
_________ ____________
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