URGENT HELP ANSWER CORRECTLY - 2 Part Question

Estimating Inventory Using Retail Inventory MethodAverage Cost Rainey Retailers disclosed the following data for January.

	At Cost	At Retail
Beginning inventory	$40,000	$52,000
Sales		620,000
Sales returns (items restored to inventory)		10,000
Purchases	300,000	600,000
Purchase returns	6,000	12,000
Freight-in	18,000

Calculate estimated ending inventory using the average cost retail method. Note: Use negative signs as appropriate in the following schedule.

	Cost	Retail
Goods available for sale:
Beginning inventory
Net purchases
Total goods available for sale
Net sales
Estimated ending inventory at retail

Cost Ratio
Numerator	/	Denominator	=	Result
	/		=

Note: Use the result above EXACTLY as shown to compute the following amount. Estimated ending inventory at cost: $Answer

b. A company purchased merchandise on credit at December 31 of Year 1 for $14,400. That merchandise was in its warehouse that same day. This purchase was not recorded in Year 1 because the accounting department did not receive the invoice from the vendor. In Year 2, the invoice was received, recorded, and paid. Required a. Assuming that nancial statements are not yet issued for Year 1 when this error is discovered, what journal entry, if any, is recorded and dated as in Year 1? The company applies a perpetual inventory system. b. Assuming that nancial statements are already issued for Year 1 when this error is discovered, what journal entry, if any, is recorded and dated as of January 1 of Year 2? Ignore income taxes. Note: If a journal entry isn't required on any of the dates shown, select "N/Adebit" and "N/Acredit" as the account names and leave the Dr. and Cr. answers blank (zero).

Date	Account Name	Dr.	Cr.
a. Dec. 31, Year 1	CashAccounts ReceivableInventoryAllowance to Reduce Inventory to Net Realizable ValueAllowance to Reduce Inventory to Market ValueAccounts PayableBonus PayableEstimated Liability on Purchase CommitmentRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldCompensation ExpenseHolding Loss on InventoryEstimated Loss on Purchase CommitmentN/AdebitN/Acredit
	CashAccounts ReceivableInventoryAllowance to Reduce Inventory to Net Realizable ValueAllowance to Reduce Inventory to Market ValueAccounts PayableBonus PayableEstimated Liability on Purchase CommitmentRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldCompensation ExpenseHolding Loss on InventoryEstimated Loss on Purchase CommitmentN/AdebitN/Acredit
	To correct error.
b. Jan. 1, Year 2	CashAccounts ReceivableInventoryAllowance to Reduce Inventory to Net Realizable ValueAllowance to Reduce Inventory to Market ValueAccounts PayableBonus PayableEstimated Liability on Purchase CommitmentRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldCompensation ExpenseHolding Loss on InventoryEstimated Loss on Purchase CommitmentN/AdebitN/Acredit
	CashAccounts ReceivableInventoryAllowance to Reduce Inventory to Net Realizable ValueAllowance to Reduce Inventory to Market ValueAccounts PayableBonus PayableEstimated Liability on Purchase CommitmentRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldCompensation ExpenseHolding Loss on InventoryEstimated Loss on Purchase CommitmentN/AdebitN/Acredit
	To correct error.