Ronica Kluge owns a business called Roni's Rummage. A physical count determined the ending inventory as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ronica Kluge owns a business called Roni's Rummage. A physical count determined the ending inventory as of December 31, 20- was $80,000. Based on past experience, Roni estimates that $6,000 of sales from this year will be refunded next year. The cost of the merchandise expected to be returned is $4,000. Using the partial Trial Balance provided below. TRIAL BALANCE Merchandise Inventory 75.000.00 Estimated Returns Inventory 3,000.00 Customer Refunds Payable 4,500.00 Sales Returns and Allowances 15,000.00 Income Summary Required: Set up T accounts for Merchandise Inventory, Estimated Returns Inventory, Customer Refunds Payable, Sales Returns and Allowances, and Income Summary and prepare the year-end adjustments for Merchandise Inventory and related accounts. Taccounts for Merchandise Inventory, Estimated Returns Inventory. Customer Refunds Payable, Sales Returns and Allowances, and Income Summary are provided. Enter balances and the year-end adjustment for Merchandise Inventory and related accounts. Label the amounts: (a) Remove the beginning balance in merchandise inventory. (b) Add the new balance per the physical count. (c) Adjust the customer refunds balance to the new estimate of next year returns (use one adjusting entry). (d) Remove the beginning balance in estimated returns inventory. (e) Add the new balance per the estimate of merchandise expected to be returned. Income Summary (a) (c) (d) Sales Returns and Allowances Balance Balance TAccounts InstruUctions Merchandise Inventory Balance Balance Estimated Returns Inventory Balance Balance Customer Refunds Payabie Balance Balance Ronica Kluge owns a business called Roni's Rummage. A physical count determined the ending inventory as of December 31, 20- was $80,000. Based on past experience, Roni estimates that $6,000 of sales from this year will be refunded next year. The cost of the merchandise expected to be returned is $4,000. Using the partial Trial Balance provided below. TRIAL BALANCE Merchandise Inventory 75.000.00 Estimated Returns Inventory 3,000.00 Customer Refunds Payable 4,500.00 Sales Returns and Allowances 15,000.00 Income Summary Required: Set up T accounts for Merchandise Inventory, Estimated Returns Inventory, Customer Refunds Payable, Sales Returns and Allowances, and Income Summary and prepare the year-end adjustments for Merchandise Inventory and related accounts. Taccounts for Merchandise Inventory, Estimated Returns Inventory. Customer Refunds Payable, Sales Returns and Allowances, and Income Summary are provided. Enter balances and the year-end adjustment for Merchandise Inventory and related accounts. Label the amounts: (a) Remove the beginning balance in merchandise inventory. (b) Add the new balance per the physical count. (c) Adjust the customer refunds balance to the new estimate of next year returns (use one adjusting entry). (d) Remove the beginning balance in estimated returns inventory. (e) Add the new balance per the estimate of merchandise expected to be returned. Income Summary (a) (c) (d) Sales Returns and Allowances Balance Balance TAccounts InstruUctions Merchandise Inventory Balance Balance Estimated Returns Inventory Balance Balance Customer Refunds Payabie Balance Balance
Expert Answer:
Answer rating: 100% (QA)
A B D 1 Merchandise Inventory Debit S 7500000 8000000 311220Adju... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
The condensed balance sheets as of December 31 for Rice and Associates and Rachel Excavation are as follows: As of December 31, the market values of Rachels inventories and property, plant, and...
-
An air parcel starting at the surface (0 km) is lifted up a 3 km high mountain over to the surface (0 km) on the other side. The initial temperature is 20C and initially e is 6 mb. How does the...
-
At 1 atm, how much energy is required to heat 47.0 g HO(s) at -24.0 C to HO(g) at 167.0 C? Use the heat transfer constants found in this table. q= kJ
-
Jaez Corporation is in the process of going through a reorganization. As of December 31, 2024, the companys accountant has determined the following information although the company is still several...
-
Have each team download a free copy of Groove from www.groove.net. Install the software on the members' PCs and arrange collaborative sessions. What can the free software do for you? What are its...
-
During 2019, Mary Maloney received a gift of property from her aunt. At the time of the gift, the property had a fair market value of $165,000, the taxable gift was $150,000, and the adjusted basis...
-
Which of the following statements is false? (a) The shortage of nursing professionals is expected to decrease in the coming decade. (b) Studies have shown an association between electronic health...
-
Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of...
-
When you are calculating the percent complete for an entire project, more than one answer might be possible. The project manager says the percent complete is about 60%, the cost engineer says it is...
-
You are to record transactions completed by Fabulous Furnishings during February of this year. Beginning balances for the accounts listed below have been provided in your Working Papers. This Company...
-
Describe the treatment of the intercompany sale of the non-depreciable assets and the sale of depreciable assets. Address the impact on the balance sheet and the income statement.
-
What ethical considerations arise in the pursuit of scientific innovation and technological progress, and how can ethical frameworks adapt to address emerging ethical challenges?
-
Question: How do you determine if a website is trustworthy? Describe in detail your approach and provide one example of a trustworthy and another of an untrustworthy website?
-
Rewrite P&G has a sophisticated supply chain management system, which likely incorporates simulation and modeling capabilities to analyze factors such as demand forecasting, inventory management,...
-
How do job analysis and job design address the problems of the HR planning process? Is Outsourcing an effective method of recruitment and selection? Briefly explain your views.
-
Analyze the ways in which performance management within the organization can adapt to changes in the workplace.
-
For a certain automobile, M(x) = -0.015x + 1.47x 7.4, 30 x60, represents the miles per gallon obtained at a speed of x miles per hour. (a) Find the absolute maximum miles per gallon and the speed at...
-
Provide examples of a situations in which environmental disruptions affected consumer attitudes and buying behaviors.
-
Board Company has a foreign subsidiary that began operations at the start of 2013 with assets of 132,000 kites (the local currency unit) and liabilities of 54,000 kites. During this initial year of...
-
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership....
-
Posada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2011, for $840,000. The subsidiary's total fair value was assessed at $1,200,000 although its book...
-
Consider the situation illustrated in Figure 25. 11. A positively charged particle is lifted against the uniform electric field of a negatively charged plate. Ignoring any gravitational interactions,...
-
A positively charged particle is moved from point A to point B in the electric field of the massive, stationary, positively charged object in Figure 25. 12. (a) Is the electrostatic work done on the...
-
Figure 25. 13 shows both the electric field lines and the equipotentials associated with the given charge distribution. (a) Is the potential at point A higher than, lower than, or the same as the...
Study smarter with the SolutionInn App