Question: Why does merchandize inventory need to be adjusted at the end of the accounting periodand how is this done in a perpetual inventory system?

Why does merchandize inventory need to be adjusted at the end of the accounting periodand how is this done in a perpetual inventory system?

Step by Step Solution

★★★★★

3.40 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Usually a physical count of inventory is conducted at the fiscal yearend a... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

904-B-A-G-F-A (8855).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

The name Unearned Revenue suggests that this type of account is a revenue account and belongs on the income statement. Instead the account appears on the balance sheet as a liability. Explain why...

Q:

The name Prepaid Expense suggests that this account is an expense and belongs on an income statement. Instead the account appears on the balance sheet as an asset. Explain why this is appropriate and...

Q:

Why must the balance of Supplies be adjusted at the end of the period?

Q:

Multiple Choice Identify the choice that best completes the statement or answers the question. Walker Corp. Walker Corp. is a merchandising company that uses the periodic inventory system. Selected...

Q:

EX#2 - Glossary: Define an inventory system in which the company does not maintain detailed records of goods on hand throughout the accounting period and determines cost of goods sold only at the end...

Q:

Here are your 15 questions from Chapters 1, 2 and 3 listed below from this book https://shorturl.at/XTDZy Chapter 1 Page 8: Concept Check 1.1 - #1, #2 Page 11: Concept Check 1.2 - #2 Page 14: Concept...

Q:

Why does merchandise inventory need to be adjusted at the end of the accounting period and how is this done in a perpetual inventory system?

Q:

QUESTION 1 Which of the following statements is true? 1. Sales are only reflected on a multi-step income statement. 2. A single-step statement contains a subtotal for income from operations. 3. Net...

Q:

Accounting hw Which of the following statements is true? Oa. There is no difference in cost to implement a perpetual as compared to a periodic system. Ob. The perpetual system eliminates the need for...

Q:

Which of the following statements is correct? A periodic inventory system provides better control over inventories than does a perpetual inventory system. A perpetual inventory system computes cost...

Q:

NM Electronics is considering two plans for raising $ 2,000,000 to expand operations. Plan A is to issue 7% bonds payable, and plan B is to issue 200,000 shares of common stock . Before any new...

Q:

Bill is a restaurant employee and is depreciating items on Form 2106 using ACRS as the chosen form of depreciation for California. As a result, Bill may have a different: a) Taxable income on the...

Q:

Joe and Fred wished to form a company. On 1 March 20XX they filed the appropriate documents with the Registrar. On 10 May 20XX they received a certificate of incorporation dated 1 May 20XX. Later...

Q:

The economics of voting Did you vote in the most recent state or national election? If so, did your objectives and constraints influence your choice of a candidate? If you did not vote, did...

Q:

(Qualitative Characteristics) SFAC No. 2 identifies the qualitative characteristics that make accounting information useful. Presented below are a number of questions related to these qualitative...

Q:

(Qualitative Characteristics) The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Identify the appropriate qualitative...

Q:

(Qualitative Characteristics) The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Identify the appropriate qualitative...

Q:

George Caloz & Frres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the companys products, a platinum diving watch, goes through an etching process. The company...

Q:

9. Find the annual payment amount and complete an amortization schedule for an amortized loan with a fixed payment, assuming a 5 year loan with a 6% interest rate and a principal amount of $10,000....

Q:

Wine and Roses, Inc., offers a bond with a coupon of 100 percent with semiannual payments and a yield to maturity of 1100 percent The bonds mature in 9 years. What is the market price of a $1,000...