At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.

Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.

Sandhill Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2021, a customer purchases $3600 of products (cost $1800). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the actual return of $210 of merchandise includes a a. credit to Allowance for Sales Returns for $210. B. debit to Returned Inventory for $105. C. debit to Estimated Inventory Returns for $105. D. credit to Returned Inventory for $105.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund llability of $390,000. During 2024, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the…

Halifax Manufacturing allows its customers to return merchandise for any reason and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $390,000. During 2024, Halifax sold merchandise on account for $12,800,000. Halifax's merchandise costs are 70% of merchandise selling price. Also during the year, customers returned $370,000 in sales for credit, with $204,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the amount of the year-end refund…

Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/ 30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected.

Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected. Instructions: 1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the gross price: A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 2. Prepare the…

Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected. Required: 1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the gross price: A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 2. Prepare the journal…

Crossings Company regularly buys merchandise from Best Company and is allowed trade discounts of 20% and 10% from the list price. Crossings made a purchase on March 20, 2019, and received an invoice with a list price of P150,000, a freight charge of P2,500, and payment terms of net 30 days. REQUIRED: What is the total cost of merchandise purchases