Riverbed Athletic Wear Inc's adjusted trial balance amounts $($with the exclusion of the adjusting entry to update Inventory and Cost of Goods Sold accounts$)$ appear in alphabetical order as follows on December $31,2024,$ the end of its fiscal year:Accounts payable$$135,575$Inventory, Jan. $1.66825$Accounts receivable$72,930$Land$123750$Accumulated depreciation$-$buildings$85,470$Mortgage payable$206250$Accumulated depreciation$-$equipment$70,785$Prepaid insurance$3960$Administrative expenses$298,485$Property tax payable$7920$Buildings$313,500$Purchases discounts$37125$Cash$28,050$Purchase returns and allowances$10560$Common shares$86,625$Purchases$662649$Deferred revenue$13,695$Refund liability$6820$Dividends declared$13,200$Retained earnings$113190$Equipment$181,500$Salaries payable$5,775$Freight in$9,240$Sales$1,051,050$Income tax expense$26,400$Selling expenses$13,200$Interest expense$17,160$Additional information:Riverbed Athletic Wear uses a periodic inventory system. Returned inventory is not saleable. A physical inventory count determined that Inventory on December $31,2024,$ was $$119,790.$ Of the mortgage payable, $$20,625$ is due in the next year. Common shares were issued during the year for $$41,250.$Prepare the adjusting entry required to update the inventory and related accounts at December $3$

Question $1$ of $3$ 

 

Riverbed Athletic Wear Inc's adjusted trial balance amounts $($with the exclusion of the adjusting entry to update Inventory and Cost of Goods Sold accounts$)$ appear in alphabetical order as follows on December $31,2024,$ the end of its fiscal year: