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

A: Under FIFO method using periodic inventory system, Value of ending inventory is calculated on 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: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…

A: LIFO -Inventory is assigned an accounting value using the latest in, first out procedure. Assuming…

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

A: Under LIFO method, using perpetual inventory system, Cost of goods sold and value of ending…

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: Hansaben

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

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

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

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: 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 inventory costing $183 on hand at the beginning of…

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

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

A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, 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: Take me to the text Suppose that on November 20, 2021, both Company A and Company B sold inventory…

A: The objective of this question is to calculate the value of inventory as at November 20 for both…

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

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

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: Take me to the text Suppose that on June 20, 2021, both Company A and Company B sold inventory with…

A: The periodic inventory system employs a periodic physical count to determine the amount of inventory…

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: It is the stock held for sale to customers. The inventory comprises of raw materials, work 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: Kirtland Corporation uses a periodic inventory system. At the end of the annual accounting period,…

A: Inventory refers to the stock that is left with the company at the end of the year or the stock that…

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: 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…

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: Records from FDNACCT Co. revealed the following data: Inventory, January 1 = P340,000 Physical…

A: Using periodic inventory system, the inventory and cost of goods sold is valued at end of accounting…

Q: The company uses the periodic inventory system.  A physical count of inventory on December 31…

A: Note 1: Calculate net profit or loss for the year as follows: The net loss incurred during the year…

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 FIFO, LIFO and average inventory method. The…

Q: King Supply maintains its internal inventory records using perpetual FIFO, but for financial…

A: A company may use any of the costing methods to compute the inventory. In case of inflation, 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.