Bush Company had the following account balances at year-end: cost of goods sold $85000; inventory $15000; operating expenses $29000; sales revenue $135000; sales discounts $1300; and sales returns and allowances $2600. A physical count of inventory determines that inventory on hand is $14100.
Instructions
(a) Prepare the adjusting entry necessary as a result of the physical count.
(b) Prepare closing entries.

Question

Quizplus · Accepted Answer

The Answer of Bush Company had the following account balances at year-end: cost of goods sold $85000; inventory $15000; operating expenses $29000; sales revenue $135000; sales discounts $1300; and sales returns and allowances $2600. A physical count of inventory determines that inventory on hand is $14100.
Instructions
(a) Prepare the adjusting entry necessary as a result of the physical count.
(b) Prepare closing entries.

Bush Company Had the Following Account Balances at Year-End: Cost