Henderson Co.'s perpetual inventory records indicate that $382,800  of merchandise should be on hand on March 31, 2020. The physical inventory indicates that $371,000 of merchandise is actually on hand.  Journalize the adjusting entry for the inventory shrinkage for Acct 201 Co. for the year ended March 31, 2020. Indicate Dr. or Cr. in front of each account.

Q: Diderot Stores Inc., which uses the conventional retail inventory method, wishes to change to the…

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

Q: EEE Company used a perpetual inventory system. At the end of 2020, the inventory account was…

A: All costs and expenses directly associated with the production of goods are included in the cost of…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Prepare adjusting entry:

Q: Blue Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: Inventory is the stock of raw material that is used by the business in the production process.

Q: On January 1, 2022, Twice Inc. has an inventory account has a balance of P450,000. During the year,…

A: Cost of goods sold = Opening inventory + Purchases during the period - Closing inventory  Inventory…

Q: Beta Company uses a periodic inventory system. Details for the inventory account for the month of…

A: LIFO method: Last-in, first-out method is one of the inventory valuation methods that assume the…

Q: Paragon Tire Co.’s perpetual inventory records indicate that $2,780,000 of merchandise should be on…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Items to Be Included in Inventory As the auditor of Hayes Company for the year ended December 31,…

A: Explain whether Company H should include the merchandise in its inventory for each situation.…

Q: At the end of Concord Department Store’s fiscal year on November 30, 2020, these accounts appeared…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: d. Ripken Company's perpetual inventory system indicate that the Inventory account has a balance of…

A: Part I d. Prepare the journal entry for inventory shrinkage for R Company.

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Skysong Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $213,418,700 at…

A: Allowance to Reduce Inventory to NRV = inventory  at cost - Inventory at realizable value =…

Q: Metlock Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: Inventory is the current asset held by the entity for the purpose of sale. It is also known as…

Q: Matcha Company asks you to review its Dec. 31, 2022, inventory values and prepare the necessary…

A: Note: In the given question, Total 7 points are given. No point is missed from my side. Thank You…

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…

Q: Yellow Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Oriole Corporation had the following items in inventory as at December 31, 2020: Item No.…

A: Direct Method : In Direct method the business will charge the inventory write-off to COGS account.…

Q: On January 2020, Roel Corp. Has the following inventory purchases…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method.

Q: The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019,…

A: Merchandise Inventory requires special treatment under the periodic inventory system because…

Q: How much is the adjusted balance of inventory?

A: Inventory is that portion of current asset which is held for the purpose of sale and generating…

Q: Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2020.

A: Account titles Debit Credit 3. Sales Revenue Dr. Accounts receivable 19200 Dr. 19200 Cr.…

Q: Bramble Company uses a periodic inventory system. Details for the inventory account for the month of…

A: Under FIFO method of inventory valuation , units which were purchased firsts are sold first ,…

Q: Jungkook Corp. has reported an inventory balance of P2,500,000 (based on physical count on January…

A:

Q: The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

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

A: Income Statement is one of the financial statements that provide the net income earned during a…

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

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Working note: Computation of cost of goods sold: Cost of goods sold=Beginning…

Q: Presented below is selected information related to Metlock, Inc. for the year ended January 31,…

A: Given, Ending inventory per perpetual records = $31,180 Ending inventory actuall on hand = $30,480

Q: Waterway Company uses a periodic inventory system. Details for the inventory account for the month…

A: Ending inventory is the cost of things on hand at the end of the reporting period. For a corporation…

Q: The December 31, 2021, year-end inventory balance of the Raymond Corporation is $234,000. You have…

A: Notes: Consignment merchandise should be added to the inventory balance as it is part of the…

Q: On January 1, 2022, Bulldogs Inc. has an inventory account has a balance of P450,000. During the…

A: Cost of goods sold = Beginning inventory + purchases - ending inventory = P450000 + 2950000 - 925000…

Q: Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31,…

A: Perpetual inventory system is that system, under which all purchases and sales related to inventory…

Q: l Bushra LLC accounting records shows the following for the year ending on 31 December 2019,…

A: COGS  = Opening inventory + Net purchases - ending inventory Opening inventory   = Nil Net Purchase…

Q: Hero Company reported inventory on December 31, 2019 at 6,000,000 based on physical count of goods…

A: FOB shipping point implies that ownership of goods are transferred from seller to the buyer when…

Q: Hadison Company's perpetual inventory records indicate that $531,630 of merchandise should be on…

A: Solution:- Preparation of Adjusting journal entry for the inventory shrinkage for Madison company…

Q: . The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost…

A: Correct inventory that should appear in Cherry Company's statement of financial position at December…

Q: Wildhorse Company asks you to review its December 31, 2020, inventory values and prepare the…

A: Inventory is the asset held by an entity for the purpose of sale. It is a current asset.

Q: Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No.…

A: Under periodic inventory system, updates to the inventory records are made on a periodic basis.…

Q: Vermont Resources, which uses the FIFO inventory costing method, has the following account balances…

A: Introduction: When a corporation makes sales using the FIFO technique, the oldest inventory or stock…

Q: Craig Company asks you to review its December 31, 2020, inventory values and prepare the necessary…

A: a. Determine the proper inventory balance for Craig Company on December 31, 2020

Q: Lol Company’s inventory account balance on December 31, 2019 was 360,000 and 30,000 of those goods…

A: Ending inventory for 2019 = inventory account balance + goods purchased on FOB shipping point =…

Q: The following items were included in Diego Company’s inventory account on December 31, 2020:…

A: A consignment agreement is one in which items are left in the hands of a third party who is allowed…

Q: Stanley Flooring Company’s perpetual inventory records indicate that $1,129,000 of mer-chandise…

A: Journal entry is a record of financial transaction in the books of accounts maintained by the…

Q: Tamarisk Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,116,400 at…

A: Allowance to reduce inventory to market =   Ending inventory at cost - Ending inventory at…

Q: Hall Company’s inventory at December 31, 2019 was P1,500,000 based on a physical count of goods…

A: Included in the physical count were goods billed to a customer FOB shipping point on December 31,…

Q: At the beginning of September, 2020, Bonita Company reported Inventory of $8200. During the month,…

A: Cost of goods sold can be calculated by adding purchases and deducting ending inventory from…

Q: Godchaux Inc. took a physical inventory at December 31, 2019 and determined that €480,000 of goods…

A: goods in transit means the goods that is sent by the seller is in transit i.e. not received by the…

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.