The perpetual inventory records of Penny Co. indicate that $415,000 of merchandise should be on hand on December 31. The physical inventory indicates that $370,000 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 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: 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: As per last-in, first-out method units sold from inventory are the units that have been purchased…

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

A: Prepare adjusting entry:

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: 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: 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 following information was available from the inventory records of Tony Company for January.…

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

Q: Spartan Company's perpetual inventory records indicate that $890,000 of merchandise should be on…

A: Accounting journal entries made to update specific accounts and restore their correct balances at…

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

A: The weighted average technique is one way to value inventory, and it assumes that the output or…

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

A: Step 1: FIFO or First-in, First-out method assumes that the goods first purchased are first sold.…

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: Prepare the necessary journal entries (include journal entry descriptions) for the selected…

A: Journal entry: It implies to the recording of financial transactions by the business that occur…

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: Manji

A: The objective of the question is to calculate the amount of goods available for sale, ending…

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

A: FIFO (First In First Out) is the inventory valuation method that determines the cost of goods sold…

Q: Prepare the adjusting journal entry

A: Definition of Bad Debt: Bad debt refers to amounts that a company is unable to collect from its…

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: Required: 1. Compute the amount of goods available for sale, ending inventory, and cost of goods…

A:

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: 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: Records from FDNACCT Co. revealed the following data: Inventory, January 1= P130,000 Physical count,…

A: Under periodic inventory system, the cost of goods sold is not recorded with every sales…

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 as FIFO, LIFO and average method.FIFO stands for…

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: nventory costing method at the end of each period, as if it uses a periodic inventory system. Assume…

A: Answer:   Beginning Inventory = 3,200 units Units Purchased = 4,100 + 2,800 = 6,900 units Units sold…

Q: Office Outfitters Inc. which uses a perpetual inventory system, experienced an inventory shrinkage…

A: Introduction  Inventory shrinkage is the loss in inventory due to various reasons such as theft,…

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 as FIFO, LIFO and average method. Using FIFO, the…

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: Blossom, Inc. estimates the cost of its physical inventory at March 31 for use in interim financial…

A: The cost of goods available for sale includes the beginning inventory and net purchases.Cost of…

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…

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.