Marigold Corporation uses a perpetual inventory system and had inventory worth $73,500 at the beginning of the year. Purchases were made during the year for $323,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Marigold paid $2,500 cash for freight to ship the inventory to its location during the year. Marigold reported cost of goods sold for the year of $245,000. Marigold has a calendar year end.

 

If Marigold counted its actual inventory balance as $98,000 at the end of the year, what adjusting entry, if any, would be made?(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired,select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry. 

Answer rating: 100% (QA)

To determine the adjusting entry needed for Marigold Corporation given the actual inventory bal... View the full answer