Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold $140,000, Sales $273,500, Delivery expense $2,100, Sales discounts $950, Merchandise inventory $22,000, Sales returns and allowances $3,200, Salaries expense $41,000, Supplies $2,700. Prepare the entries to close the appropriate accounts to the Income Summary account.

Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold $140,000, Sales $273,500, Delivery expense $2,100, Sales discounts $950, Merchandise inventory $22,000, Sales returns and allowances $3,200, Salaries expense $41,000, Supplies $2,700. Prepare the entries to close the appropriate accounts to the Income Summary account.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 2MC: Under the periodic inventory system, what account is debited when an estimate is made for sales made...

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Under the periodic inventory system, what account is debited when an estimate is made for sales made this year, but expected to be returned next year? (a) Sales Returns and Allowances (b) Merchandise Inventory (c) Customer Refunds Payable (d) Sales
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