Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,430; Inventory $14,340; Operating Expenses $29,560; Sales Revenue $124,430; Sales Discounts $1,120; and Sales Returns and Allowances $1,830. A physical count of inventory determines that merchandise inventory on hand is $13,050.

Prepare the adjusting entry necessary as a result of the physical count.

1. Account Titles and Explanation

Debit Credit

2. Account Tiles and Explanation

Debit Credit

Explanation:

The adjusting entry for physical count is shown below:

Cost of goods sold A/c Dr $1,290

           To Inventory A/c $1,290

(Being the adjusting entry for physical count is recorded)

The computation is given below:

= Year end balance of inventory account - physical inventory on hand

= $14,340 - $13,050

= $1,290

The closing entries for the following accounts are shown below:

1. Sales Revenue A/c Dr $124,430

            To Income Summary $124,430

(Being revenue account closed)

2. Income summary A/c Dr $94,230

           To Cost of goods sold $61,720   ($60,430 + $1,290)

           To Sales Discounts $1,120

           To Operating Expenses $29,560

           To Sales Returns and Allowances $1,830

(Being expenses accounts are closed)

3. Income summary A/c Dr $30,200    ($124,430 - $94,230)

                To Retained earning $30,200

(Being the difference is credited to retained earning)

his average speed in km per hour is ≈ 55.4 km/h and about 15.4 m/s.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.