Blue Company had the following account balances at year-end: Cost of Goods Sold $61,350; Inventory $17,960;...

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Blue Company had the following account balances at year-end: Cost of Goods Sold $61,350; Inventory $17,960; Operating Expenses $32,910; Sales Revenue $124,050; Sales Discounts $1,490; and Sales Returns and Allowances $2,110. A physical count of inventory determines that merchandise inventory on hand is $12,520. (a) Prepare the adjusting entry necessary as a result of the physical count. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Blue Company had the following account balances at year-end: Cost of Goods Sold $61,350; Inventory $17,960; Operating Expenses $32,910; Sales Revenue $124,050; Sales Discounts $1,490; and Sales Returns and Allowances $2,110. A physical count of inventory determines that merchandise inventory on hand is $12,520. (a) Prepare the adjusting entry necessary as a result of the physical count. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

When physical count of merchandise inventory is taken at the end of reporting period d... View the full answer