Matt Henry owns a business called Henry's Sporting Goods. His beginning inventory as of January 1, 20--,

Question:

Matt Henry owns a business called Henry's Sporting Goods. His beginning inventory as of January 1, 20--, was $45,000, and his ending inventory as of December 31, 20--, was $57,000. Set up T-accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...