Freedman Company estimates that sales this year of $12,000 will be returned next year and customers will be granted a full refund. Which of the following journal entries would Freedman Company record as part of its year-end adjustments assuming it uses the perpetual inventory system? a.Debit Estimated Returns Inventory for $12,000 and credit Income Summary for $12,000 b.Debit Sales Returns and Allowances for $12,000 and credit Cost of Goods Sold for $12,000 c.Debit Inventory Short and Over for $12,000 and credit Merchandise Inventory for $12,000 d.Debit Sales Returns and Allowances for $12,000 and credit Customer Refunds Payable for $12,000

Q: The following is selected information from Mars Corp. Inventory, February 28, 2018 $455,000…

A: Formula: Net purchases = Gross purchases - Purchase discounts - Purchase returns and allowances.…

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate…

A: Net purchase at retail = Goods available at retail - markups + markdowns  Goods available at retail…

Q: Assume the following data for Oshkosh Company before its year-end adjustments: Unadjusted Balances…

A: Adjusting entry: It can be defined as the journal entry that is recorded at the closing of the…

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A: Conventional retail inventory method is related upon the relationship between cost of product and…

Q: Chico Company allows its customers to return merchandise within 30 days of purchase. *At December…

A:

Q: For the year ended December​ 31, 2025, Davidson Mart had sales of $250,000 and cost of goods sold of…

A: Merchandise refers to the stock that the company held for resale purpose or the goods that is not…

Q: Assume the following data for Oshkosh Company before its year-end adjustments: Unadjusted Balances…

A: a. Prepare journal entry for the estimated customer.

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A: Calculation of Gross Sales Gross Sales = Goods available for Sale at retail – Ending Inventory at…

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Q: Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the…

A: Perpetual inventory system helps to track inventory after each sale or purchase made hence, it is…

Q: Rela taps and tubes uses periodic method and it has reported the following in the year 2020 Sales…

A: Formula for Cost of Sales: =Opening Inventory + Purchases made - Purchase discount - Purchases…

Q: National Distributing Company uses a periodic inventory system to track its merchandise inventory…

A: formula to calculate cost percentage = cost of goods sold / net sales    cost of goods sold =…

Q: A company reports the following: Cost of goods sold $335,070 Average inventory 74,460 Determine (a)…

A: Inventory turnover ratio means the number of times a company turns its inventory into sales. The…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales in inventory = 365/(cost of goods sold/Average inventory)  Average inventory = (Opening…

Q: Kennedy Company had the following account balances at year-end: cost of goods sold $85,000;…

A: Closing Entry: Closing entries are passed at the end of an accounting period to close the balances…

Q: The following information was available for the year ended December 31, 2019: Net sales Cost of…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

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Q: in the next year. Assuming the periodic inventory system is used, which of the following adjusting…

A: The correct answer is D . Debit Sales Returns and Allowances and credit Customer Refunds Payable

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A: Net sales revenue = Sales revenue - Sales returns and allowances Cost of goods sold = Beginning…

Q: Resco, a local retail establishment, expects to make inventory purchases as follows for the…

A:

Q: As of January 1, 2020, Aristotle Inc. adopted the retail method of accounting for its merchandise…

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Q: Assume the following data for Lusk Inc. before its year-end adjustments: Unadjusted Balances Debit…

A: a.Calculate the amount of sales:

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A: Debit what comes in and credit what goes out Debit the receiver and credit the giver Debit all…

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Q: The following selected account data is taken from the records of Reese Industries for 2019. Assume…

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A: Customer allowance and return Customer allowance is also known as sales allowance, it is refer as…

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A: Journal entries refer to transaction recording into the day book of the company or accounts of…

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A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

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A: Income statement: It is one of the financial statements prepared by an organization. This statement…

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A: INTRODUCTION Periodic inventory system is the method of recording inventory. Under Periodic system…

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A: Periodic inventory system: Periodic inventory system is a system, in which the inventory is updated…

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A: Income Statement of the business is a useful financial statement which shows all income and expenses…

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A: Ending inventory are overstated by $800 ($23,710 - $22,910)

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A: Days sales inventory  = Average inventory/Cost of Goods sold * 365

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A: Prepare adjusting entry:

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A: Financial transactions are initially recorded in the form of journal entry.

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A: Inventory: It is the goods and material a business hold to sell. There are two methods for recording…

Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies…

A: Number of units sold = 4,500 + 9,000 = 13,500  Number of units purchased = 10,000 + 6,000 = 16,000…

Q: Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: inventory system and the merchandise originally cost $31,000. On February 1, R. Mark gave Golden a…

A: Journals are the books of prime entry. All the transactions are recorded at the initial stage here…

Q: Paty Inc. uses periodic method and reported the following amounts for the year: Ending…

A: Cost of sales: =Opening Inventory + Purchases - Purchases discounts - Purchases returns &…

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.