please see images ### Accounting Inventory Adjustment ExampleBasga Company uses the periodic inventory system. The initial inventory was valued at $135,961. A subsequent physical count indicates that the current inventory is $144,639. Record the adjusting entries using T accounts.#### T Account Layout- **Merchandise Inventory** - Bal. - (b) Adj. - **Income Summary** - (a) Adj. - (b) Adj.---On December 31, Marchant Company performed a physical inventory count. This company uses the perpetual inventory system. The physical count resulted in an inventory amount of $174,755. The current Merchandise Inventory account balance is $177,376.Journalize the adjusting entry as follows:#### General Journal| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT ||----------|-----------------|------------|-------|--------|| 20-- | Adjusting Entries | | | || Dec. 31 | | | | |### Explanation of Tables and Diagrams- **T Accounts**: These are simple visual representations of accounts that show debits and credits. The Merchandise Inventory and Income Summary T accounts will reflect the entries needed to adjust the inventory records. - **General Journal**: This table is used to formally record the adjusting entries on December 31. The date, description, and the amounts to be debited and credited need to be filled in based on the inventory adjustments.

In Periodic inventory , the beginning inventory balance is written off by debiting it to income…

Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A physical count reveals that the latest inventory amount is $144,639. Record the adjusting entries, using T accounts. Merchandise Inventory Income Summary (a) Adj. (b) Adj. Bal. (a) Adj. (b) Adj. On December 31, Marchant Company took a physical count of its merchandise inventory. It operates under the perpetual inventory system. The physical count amounted to $174,755. The Merchandise Inventory account shows a balance of $177,376. Journalize the adjusting entry. GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Adjusting Entries Dec. 31

Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A physical count reveals that the latest inventory amount is $144,639. Record the adjusting entries, using T accounts. Merchandise Inventory Income Summary (a) Adj. (b) Adj. Bal. (a) Adj. (b) Adj. On December 31, Marchant Company took a physical count of its merchandise inventory. It operates under the perpetual inventory system. The physical count amounted to $174,755. The Merchandise Inventory account shows a balance of $177,376. Journalize the adjusting entry. GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Adjusting Entries Dec. 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Describe internal event with example.
subject:accunting information system. Q: explainDocument flowcharts and give two examples.
What information is provided by a record layout diagram?
What is a data dictionary?
Define call provision
Define Prepayments.
Read and interpret abalance sheet.
Define transaction
Give an application for a replicated database.
Write a note on IFRS.