Comprehensive Problem 2 Part 4 and 6: Note: You must complete parts 1, 2 and 3 before attempting to complete part 4 and part 6. Part 5 is an optional work sheet. 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 b.   Insurance expired during the year       12,000 c.   Store supplies on hand on May 31       4,000 d.   Depreciation for the current year       14,000 e.   Accrued salaries on May 31:              Sales salaries   $7,000          Office salaries   6,600   13,600 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. If an amount box does not require an entry, leave it blank. Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2. Date Description Post. Ref. Debit Credit   Adjusting Entries       20Y6         May 31     fill in the blank 2 fill in the blank 3       fill in the blank 5 fill in the blank 6           May 31     fill in the blank 8 fill in the blank 9       fill in the blank 11 fill in the blank 12           May 31     fill in the blank 14 fill in the blank 15       fill in the blank 17 fill in the blank 18           May 31     fill in the blank 20 fill in the blank 21       fill in the blank 23 fill in the blank 24           May 31     fill in the blank 26 fill in the blank 27       fill in the blank 29 fill in the blank 30       fill in the blank 32 fill in the blank 33           May 31     fill in the blank 35 fill in the blank 36       fill in the blank 38 fill in the blank 39           May 31     fill in the blank 41 fill in the blank 42       fill in the blank 44 fill in the blank 45

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.