Spartan Company's perpetual inventory records indicate that $890,000 of merchandise should be on hand on October 31. The physical inventory count indicates that $876,000 is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Spartan Company for the year ended October 31.

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory valuation method includes: FIFO method LIFO method Weighted average cost method FIFO…

Q: Record the adjustment into T accounts and then journalize the adjusting entry.

A: Whenever there is decrease /increase of the physical inventory in comparison to the book value then…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Inventory can be defined as the stock of goods or products that is manufactured and stored by the…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Periodic Inventory System:The periodic inventory system is a method for  monitoring  on both the…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: As per last-in, first-out method units sold from inventory are the units that have been purchased…

Q: Novelty Furnishings Company’s perpetual inventory records indicate that $677,500 of merchandise…

A: Inventory shrinkage is a term in the inventory control process that shows the loss of inventory. In…

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: Hansaben

A: Total $ of units available = (2000 x 5) + (5000 x 6) + (3000 x 8)= 10,000 + 30,000 + 24,000= 64,000…

Q: When preparing its quarterly financial statements, Pace Company uses the gross margin method to…

A: The cost of goods sold (CoGS) would be computed as follows: - CoGS = Sales × 1 - Gross Margin…

Q: Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December…

A: Inventory Costing Method:- There are various methods used for valuation of inventory in the income…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: The inventory can be valued using various methods such as FIFO, LIFO and the average method. Ending…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

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

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Solution :   Units Unit Cost Total Cost Inventory, December 31, prior year 1940 $…

Q: the records of Penny company indicated that $ 415,000 of merchandise should be on hand on december…

A: Inventory shrinkage: Any errors or losses of merchandise due to breakage, theft or spoilage are…

Q: A company using the periodic inventory system has merchandise inventory costing $247 on hand at the…

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

Q: Basga Company uses the periodic inventory system. Beginning inventory amounted to $135,961. A…

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

Q: A company using the periodic inventory system has inventory costing $188 on hand at the beginning of…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Q: Bing Corp. has the following normal account balances at its 12/31/22 year-end, prior to adjusting…

A: PERIODIC INVENTORY SYSTEM   A periodic inventory system is a mechanism for measuring the level of…

Q: A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with…

A: Discount on payment = Purchase amount x rate of discount = $65,000 x 2% = $1,300

Q: [The following information applies to the questions displayed below.] A company reports the…

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

Q: A company reports merchandise inventory on December 31 at $250,000 but LCM applied to items is…

A: In the given situation, the rectification entry needs to be passed as the company seems to follow…

Q: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Periodic Inventory :- periodic inventory system is a mechanism for mesuring cost of goods sold and…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: The inventory can be valued using various methods such as FIFO, LIFO and the average method. Ending…

Q: madison company perpetual inventory records indicate that 875,300 of merchandise should be on hand…

A: Adjusting entry: Date Account Title and Explanation Debit ($) Credit ($) oct 31 Cost…

Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…

A: FIFO (First-In, First-Out) method: In FIFO, you sell the oldest inventory items before the newer…

Q: nethod at the end of each period, as if it uses a periodic inventory system. Assume its accounting…

A: The periodic inventory system is used for valuing the inventory. Under this method the inventory is…

Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…

A: Inventory cost valuation has different kinds of following methods: a) FIFO: Under this method, it is…

Q: Madison Company's perpetual inventory records indicate that $538,630 of merchandise should be on…

A: Journal entry: It is a systematic record of a financial transaction recorded in chronological order.

Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…

A: Perpetual inventory system is a system where the cost of goods sold is updated as soon as the goods…

Q: Journalize the adjusting entry for the inventory shrinkage for Madison Company for the year ended…

A: When the physical count of Inventory fall short than the inventory as per the inventory records, the…

Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…

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

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: Corona Company's perpetual inventory records indicate that $199,240 of merchandise should be on hand…

A: Adjusting entry: It implies to the journal entry that is booked or recorded by the business at the…

Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…

A: There are two inventory costing methods namely the Periodic Method and the Perpetual Method:Under…

Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records…

A: Answer:- A company's ending inventory is the amount of items it has on hand at the conclusion of an…

Q: The Phoenix Corporation's fiscal year ends on December 31. Phoenix determines inventory quantity by…

A: FOB Shipping point FOB Destination point  Under this system, the responsibility of the seller over…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: clsoing inventory = opening inventory + purchase - sales

Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…

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

Q: Orion Iron Corporation tracks the number of units purchased and sold throughout each year but…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Emily Company uses a periodic inventory system. At the end of the annual accounting period, December…

A: INCOME STATEMENT   Income statement is One of the important financial statement of the Company.…

Q: The stockholders' equity section of TVX Company on February 4 follows. Common stock-$20 par value,…

A: Statement of stockholders' equity is one of the financial statements that shows change in amount of…

Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…

A: Periodical Inventory System:A Periodic Inventory System is a way to keep track of inventory without…

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.