Use the information provided below to prepare a partial end-of-period spreadsheet for Nicks Gift Shop for the year ended December 31, 20--. The ending merchandise inventory is $45,000. Nick estimates that customers will be granted $5,500, in refunds next year for merchandise sold this year. The estimated cost of the returned inventory is $3,500.

1. Complete the Adjustments columns for Merchandise Inventory and related accounts.

2. Extend all accounts to the Adjusted Trial Balance columns.

3. Prepare the cost of goods sold section from the spreadsheet. (to be completed in excel)

C CREDIT BALANCE 5,000.00 A B 1 Nick's Gift Shop 2 Partial Trial Balance 3 For Year Ended December 31, 20-- 4 ACCOUNT TITLE DEBIT BALANCE 5 6 Merchandise Inventory 40,000.00 7 Estimated Returns Inventory 2,500.00 8 Customer Refunds Payable 9 Income Summary 10 11 Sales 12 Sales Returns and Allowances 13,000.00 13 Purchases 120,000.00 14 Purchases Returns and Allowances 15 Purchases Discounts 16 Freight-In 800.00 17 175,000.00 1,400.00 1,000.00